Hi I am looking to find how I go about claiming for use of home as office expense, I know I can claim on 7850 (home office expense) do I set this up in the journal and if so how
thanks
Hi I am looking to find how I go about claiming for use of home as office expense, I know I can claim on 7850 (home office expense) do I set this up in the journal and if so how
thanks
I just do it by entering it as “money out” on my drawings bank account and then tagging as “something not on the list”.
Not sure if you are a ltd co or sole trader. I am a sole trader and, following a guide on the Quickfile knowledge base, do it as follows:
Create a new supplier and call it Expenses; Approved work from home costs. When you have your figures ready, raise an invoice on this new supplier. Go to pay it and say funds are taken from 1202 (Prop Drawings Account) via a bank tfr. Code it nominal 7850.
Go into 1202 (via chart of accounts) and raise a journal to Dr 1202 and Cr 3100. The net effect is to show the amount in the expenses section of the P&L acc, thus reducing the taxable profit for tax purposes. In reality, no money has physically left the business.
Simple journal.
Debit 7850
Credit capital introduced (sold trader or partnership) or director’s lian account (Ltd co)
Repeating journal if to be same amount each month.
BIM75010 (Google it) and the cross referenced sections explain how to calculate so you get it right for tax.
Gardenman_2803, thank you I have tried that but don’t seem to have a 1202, I have taken it from drawings and 7850 seems to work
Thank you all for your time and effort it has really helped me out
Does anyone know how it works for multiple directors?
If you have two directors in a ltd company who both reside and use the same address/location, can EACH of the directors claim the ÂŁ4 per week allowance (ÂŁ4 x 52 weeks x 2 directors) or is it just the once as it is one address?
And is there a link to anywhere that this is confirmed either way?
Hi, yes, if you have 2 directors they can both claim the work from home allowance. Use ÂŁ18 per month rather than ÂŁ4 per week - it works out ever so slightly more!
Thank you, much appreciated.
I do not have 7850 in my draw down menu… I am just starting importing from another accounting software… Any advise ?
Hello @Mario
Different company types have slightly different nominal structures by default but you can add your own nominal codes if required.
Thanks Steve, in fact I was looking for the one used in Quickfile… I read it should be 7850, but I cannot find it in the drawdown menu…Any advice ? Or do I need to create it ?
Hello @Mario
7850 (Use of home as office) would not show under the limited company default chart of account so you would need to create it.