Limited co use of home office and broadband

Accounting
1

Hi,

I have checked the archives but thought I could seek a bit of further advice.

I am a one-person limited company. My work is split about 50/50 between my home (garden) office and an on-site gig.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32815 says I can claim 18 pounds / month flat-rate for the use of the home; it also says that telephone costs are on top of that. My broadband and telephone line are a done as a “bundle” from Virgin and includes unlimited UK phone calls, and is used domestically. I thought it would be reasonable to claim 50% of the bundle cost. That’s roughly 250 quid over the year.

And having done these, do I just put in an entry against the directors loan account?

2

Hi,

It would seem reasonable to me as well to claim both of the expenses. In terms of the bookkeeping entry it would be, as you correctly stated, an entry against (or crediting) the DLA.

Kind regards,
Chris

3

Thanks for the (informal) advice.