hi
which nominal should i used for the following?
landlord safety checks done annually including gas, electric, fire alarms, emergency lighting?
HMO licence fee paid every 5 years and other associated council fees?
annnual and monthly subscriptions: National Lanlord Associate, various software etc. Ive put these all in subscriptions?
thanks
Personally I would separate out software subscriptions and membership subs. Software costs can just go to IT costs.
You can always set up new nominal codes for any regular items of expenditure which don’t easily fit into an existing code.
All depends on how much information and traceability etc you want. They’re all basically costs/overheads so you could throw them all under the same nominal.
You could also go the other way and make a separate nominal for each service, e.g. electric cert, gas cert etc then you could see exactly what gets spent on each service.
Or you could just find a happy medium! Personal preference mainly a lot of the time.
Hello Jimmy
As mentioned above, it depends on the level of detail you want to record and what caused the expenditure.
Agents fees, charged as a percentage of the rent received is a direct expense. Thus this type of expense is only incurred if there is a sale and is directly related, hence it is a direct expense.
The items you’ve mentioned above are all incurred even if you never successfully rent the property and are therefore indirect expenses, also know as overheads.
Personally I have separate codes for each type of expenditure as these appear on the Profit & Loss reports and you can see at a glance what items are the greatest expense. Self-Assessment does require you to break out certain expenses so it’s highly recommended to at least use different codes for each of those. For micro-entity limited companies very little is required to be broken out but I would stick to the same codes as Self-Assessment to make life easy should HMRC ever decide to call.
In formal accounting expenses that cover a multi-year period are turned into accruals and a charge is made for each year. For small entity accounts you can normally take the whole charge in the year in which the expense was incurred (cash accounting).
A long answer to a short question. I should state that I’m not an accountant, just someone who has done book keeping for 30 odd years.
Great info thanks for the replies
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