The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Two new income tax simplification measures were introduced from 2013/14 onwards to reduce the administrative and regulatory burden on small unincorporated businesses and therefore encourage individuals to start their own businesses. The provisions remove the need to capture and retain certain information that was required prior to that tax year and also save costs in complying with certain parts of the tax legislation.
These two new measures are:
FA 2013, Schs 4, 5
The criteria for using these measures are different, but both are available to unincorporated businesses only.
This guidance note is an overview of the fixed rate deduction for expenses. For information on the simplified cash basis, see the Simplified cash basis for small unincorporated businesses guidance note.
For HMRC guidance on fixed rate deductions for expenses, see Chapter 3 of the technical note dated 28 March 2013 which was published to coincide with the Finance Bill (now archived). This guidance is still valid as no changes were introduced during the parliamentary process, although note that since then the fixed rate deductions for business use of the home and business premises used as a home have been extended to partnerships (so long as all the partners in the firm are individuals).
Fixed rate deductions are available to all unincorporated businesses, not just those that have a turnover eligible for the simplified cash basis discussed in the Simplified cash basis for small unincorporated businesses guidance note. However, in a partnership, no partner may use
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login