Non statutory expenses
HMRC have introduced an optional system of 'simpler income tax for smaller businesses' which takes effect from April 2013 for smaller unincorporated businesses. As a consequence of this change, HMRC are withdrawing some non-statutory 'business mileage' deductions and existing agreements for 'board and lodging' private use adjustments as these have been superseded by the 'simplified expenses' rules.
HMRC have issued guidance in the form of a Tax Brief which sets out:
- transitional arrangements for the withdrawal of 'board and lodging' agreements.
- how businesses can use the 'simplified expenses' rules for business mileage, 'board and lodging' private use adjustments and flat rate adjustment for use of home.
Please do get in touch if this is something which would be of interest to you and your business so we can bear it in mind when completing your business accounts.
Internet link: Tax Brief