Hi
As a sole trader who works from home a proportion of my household bills can obviously be claimed back as an expense when submitting my tax return. Please can you tell me if there is anywhere in Quickfile where these costs can be logged and how I attribute them to my profit and loss statement.
Thank you
Lucy Hogan
Hi Lucy,
In this situation you would typically enter a purchase into the system for the apportioned amount and log it to the relevant code (e.g. Gas, Electricity etc). You can then pay this from the Proprietor Drawings account. This expense will then offset against your profits in the P&L report.
The way I do this is to calculate the annual business use of household running expenses using the industry standard method, divided by 12 for a monthly amount. Or the table method
Then make one payment per month from the business to the private bank account and tag it as rent, or create a use of home as office nominal
See link for guidance:
http://www.rossmartin.co.uk/self-employed/what-expenses-can-i-claim/631-use-of-home-as-office-calculator