It’s a fix
From 6 April 2013 any unincorporated business or Limited Liability Partnership can opt to use fixed rate expenses to replace the calculation of actual costs incurred in three categories:
Motoring cost
| Vehicle and usage | Rate per mile |
|---|---|
| Car – first 10,000 miles per year | 45p |
| Car – in excess of 10,000 miles per year | 25p |
| Motor cycle – all miles | 24p |
Use of home
| Number of hours used per month | Rate per month |
|---|---|
| 25-50 hours | £10 |
| 51-100 hours | £18 |
| 101 hours or more | £26 |
Private use of commercial premises
| Number of owners/family members who live in the premises | Amount disallowed per month |
|---|---|
| 1 | £350 |
| 2 | £500 |
| 3 or more | £650 |
This last category applies where the business is a hotel or pub, and the owner lives on site. All of the premises costs are charged to the business, and the set amounts of those costs are disallowed to represent private occupation.
The rates are fixed, but businesses vary. We will be happy to discuss whether it is in your best interest to claim them, or to continue to work out actual figures.