How to accomodate working from home expenses as a Ltd company

[nrycraft]

I believe that in UK a Ltd company can claim £4 a week towards utilities. How should these be managed within quickfiles?
Through the Directors Loan Account?

Thanks

[QFSteve]

Hello @nrycraft

I found the following similar query in the forum which may help.

How to log working from home costs as a Director

Working from home we’re allowed to expense certain amounts to cover energy bills as a proportion of the household bills. As a sole trader this was easy as I simply used the HMRC fixed amount, and I’ve continued to do this by claiming as a out-of-pocket expense. But with the hike in energy prices and change to a Limited company I’m not sure that’s the best way to continue. Is there a sensible way to calculate the amounts that can be claimed, and which accounts would be used for transactions give…

[JamesWhitelegg]

Hi,

It’s the employee who claims, not the company. Utility bills in the company’s name are already allowed for corporation tax.

When we are talking about a limited company, you are classified as an employee, and so the HMRC guidance is here: Claim tax relief for your job expenses: Working from home - GOV.UK

The guidance for self-employed is slightly different.

Strictly as an employee you cannot claim the allowance simply because you choose to work from home, if your company has a permanent base elsewhere. However if your business is based at home then you can claim the allowance.

For my clients in this situation I put through a journal at the end of each year:

Dr Expenses in the p&l
Cr Directors’ Loan Account.