HMRC "Simplified Expenses" for a Bed & Breakfast Business

[Arhob1]

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 3/5 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.

 

[Newchodge]

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 3/5 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.

Can you give a link to where you saw this, please. put a space instead of a dot

 

[Arhob1]

Hi. Sorry not sure what you mean re space not a dot.

The link was in the original post but I have pasted it below as text only so you can copy/paste if you wish. Many thanks.

Simplified expenses if you're self-employed

Use a simpler calculation to work out income tax for your vehicle, home and business premises expenses

www.gov.uk

 

[Newchodge]

Hi. Sorry not sure what you mean re space not a dot.

The link was in the original post but I have pasted it below as text only so you can copy/paste if you wish. Many thanks.

Simplified expenses if you're self-employed

Use a simpler calculation to work out income tax for your vehicle, home and business premises expenses

www.gov.uk

Sorry, I didn't notice it on your original post.

That seems absolutely clear.