In reference to this document:
And this ...
Chapter 3: Simplified expenses
1. The draft legislation includes the necessary legislative framework for three types of simplified expenses: expenditure on vehicles, use of home for business purposes, and premises used for both home and for business purposes.
2. The key principles underlying the simplified expenses are that:
• allowable expenditure may be calculated using a simple flat rate allowance, rather than a potentially complex apportionment of actual expenditure
• they are entirely optional outside the cash basis
• within the cash basis simplified motor expenses must be used, but the other two simplified expenses are optional.
I take this to read that any (unincorporated?) business that doesn’t elect to use these new simpler rules (cash accounting) could still elect to use the calculations for use of home for business purposes, and premises used for both home and for business purposes.
So use of home as office could be:
Number of hours worked at home per month x applicable amount
Where the applicable amounts is:
25-50 hours per month £10
51-100 hours per month £18
101 hours or more per month £26
Or of course the claim for allowable portion of actual expenses as before.
Is that correct?
Is it just unincorporated businesses?