Simplified Expenses For Motor Vehicles

There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses regime is not available to limited companies or business partnerships involving a limited company.

The fixed rate deduction can be used instead of working out the actual costs of buying and running your vehicle, e.g. insurance, repairs, servicing and fuel. The use of the simplified flat rates is entirely optional. However, once a decision is made to use the simplification for a specific vehicle, this must continue to be used for a vehicle as long as it is used for business purposes.

Under simplified expenses, the following flat rates per mile available:

  • Cars and goods vehicles first 10,000 miles 45p
  • Cars and goods vehicles after 10,000 miles 25p
  • Motorcycles 24p

The self-employed can continue to claim for other costs not covered by the flat rate for mileage such as parking, tolls and congestion fees as well as other separate travel expenses such as train journeys.

Posted by Cassey Nixon on

17th September 2019

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