HMRC "Simplified Expenses" Question...
Discussion
Hoping someone can give me a steer on these "Simplified Expenses" - https://www.gov.uk/simpler-income-tax-simplified-e...
My friend has a B&B business with 3 out of 5 bedrooms used by the business, the other two occupied by her family.
As I understand it her B&B business expenses could be crudely 3/5 of the total expenses of the household (elec/gas/TV/community charge/food etc) and then those expenses offset against her revenue for tax purposes.
But the simplified expenses (how I interpret them) imply that instead of using the 2/5 multiplier she can just deduct the figure given in the web page (£500pcm for two family members) from the total household expenses and offset the remainder against her revenue.
Am I interpreting that correctly?
Many thanks.
My friend has a B&B business with 3 out of 5 bedrooms used by the business, the other two occupied by her family.
As I understand it her B&B business expenses could be crudely 3/5 of the total expenses of the household (elec/gas/TV/community charge/food etc) and then those expenses offset against her revenue for tax purposes.
But the simplified expenses (how I interpret them) imply that instead of using the 2/5 multiplier she can just deduct the figure given in the web page (£500pcm for two family members) from the total household expenses and offset the remainder against her revenue.
Am I interpreting that correctly?
Many thanks.
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