Simplified expenses are available to self-employed individuals (sole traders) and business partnerships. Limited companies cannot use simplified expenses — they must calculate actual costs and apportion them correctly between business and personal use. Within the allowed categories, simplified expenses are optional. You can choose to use them for some items and calculate actual costs for others, as long as you do not mix the two methods for the same expense category in the same year. For example, you could use the flat rate for working from home but claim actual costs for your business vehicle if that gives you a higher deduction.
