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.

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.


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

Where Taxpayers and Advisers Meet
Tax Insider Tip: Claim Fixed Rate Deductions
09/09/2016, by Tax Insider, Tax Tips - General Tax
Rating: 0/5 from 0 people

To save some of the work incurred in keeping details of expenses, individuals carrying on a trade as a self-employed sole trader or in partnership with other individuals can instead claim fixed rate deductions.

Fixed rate deductions are available in respect of vehicle deductions, business use of home and in relation to business premises which are also used as a home.

Businesses can choose to claim the fixed rate deductions to save work.
Alternatively, they can keep records of actual expenditure and make the necessary apportionments between home and business use. Where records are kept businesses have the option of claiming a deduction for either the actual expense or, where this gives a more favourable result, claiming the fixed rate deduction.

Lucy works from home running a small business making soft toys. She works 30 hours a week.

To save paperwork, she claims a fixed rate deduction of £26 per month (the rate applicable where hours worked at home in a month are 101 or more) for use of her home for business purposes.


About The Author

The above article is taken from 'Tax Insider,' TaxationWeb's own publication specifically for taxpayers and their advisors. 'Tax Insider' is a monthly magazine containing numerous tax tips, articles, questions and answers from leading tax experts, aimed at helping taxpayers to save tax and reduce their liabilities.

To register and download free copies of Tax Insider, and for details of special offers and how to order, visit:

Back to Tax Tips

Please register or log in to add comments.

There are not comments added

ICPA Chairman Tony Margaritelli discusses 3 topics centred around October, including: 1. HMRC Furlough Fraud & Fighting For Your Clients, 2. Think About Yourself, 3. Are You a HMRC Customer.