This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Confusing advice on 'simplified expenses'

Dilly9
Posts:5
Joined:Fri Jun 27, 2014 1:32 pm
Confusing advice on 'simplified expenses'

Postby Dilly9 » Thu Jun 25, 2015 9:42 am

I thought simplified expenses were supposed to make things easier for the self-employed.
So why are HMRC making certain aspects so confusing?
I refer specifically to the flat rate expenses you can claim (based on hours of business use per month) for working from home.
Does this include your landline and internet costs or can they be claimed separately?
Well, if you read the advice on the gov.uk website (https://www.gov.uk/simpler-income-tax-s ... -from-home), it seems quite clear:
'The flat rate doesn’t include telephone or internet expenses. You can claim the business proportion of these bills by working out the actual costs.'
However, according to the two HMRC technical advisors I've spoken to about this (the first several months back and the second last week), that's simply not correct. The flat rate DOES include home phone and internet, they both assured me (and the advice on the website is wrong). The only time a home worker could claim internet and phone costs on top of the home working flat rate would be if they had a separate business phone line/internet account. I'm sure that's not the case in most instances.
Has anyone else had experience of this?
And what about mobile phone costs? My understanding is that you CAN claim your business proportion of this on top of simplified expenses. It makes sense, I suppose, because a mobile can be used anywhere (not just at home). But since when did tax rules make sense?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Confusing advice on 'simplified expenses'

Postby bd6759 » Thu Jun 25, 2015 10:34 pm

Both the advisors you spoke with are wrong.

Their official guidance that they follow is here:

http://www.hmrc.gov.uk/manuals/bimmanual/BIM75010.htm


Return to “HMRC Administration, Practices & Methods”