Working from home allowance

I started a thread about putting down expenses for ltd of £26 pm for a director working from home - unfortunately, I’m new here and I posted it in the wrong place!

Please see here: Working from home expense - AGAIN!

I have a specific question relating to this that is accounting!

Is it acceptable to raise a purchase for this expense covering from today till the end of my accounting year?

TIA - from a simple noob

Working from home allowance isn’t a purchase so no it shouldn’t be created using a purchase invoice.

Create a journal and add the amount to that, using the use of home nominal and the directors loan account as the balancing line.

Thank you for your advice @Paul_Courtier - I’ve managed what you have suggested!

Is this something I have to do every month or can I simply do £312 for the entire accounting period?

If it is something that needs inputting monthly - is there a way to set this up as recurring.

Thank you for your help

EDIT: I’ve seen that I can set this up as a recurring journal entry now! Thanks again.

P.S. I’ve set this to repeat monthly from the first day of incorporation - I assume this is ok and it doesn’t have to be linked to calendar months?

P.P.S Is this the same method I should use for mileage? As opposed to a purchase?

Technically the working from home allowance is based on the tax year but you can claim the whole year even if you worked like a week from home.

So just set up a journal for the year up to April 21 for the full amount and then you can do it again for the year ending April 22 at the start of the tax year if you wish.

Bare in mind that is only in relation to covid. Normal years you can’t claim the full year in one go.

Thanks again! :slight_smile:

To clarify - I’m claiming back the expense via a limited company - should this still be April-April or Acounting Period-Accounting Period? Forgive if I’m being dumb - this is very new to me!

EDIT: I spotted somewhere that you’d be inclined to do journal entries for travel expenses so I’ve done the too! :slight_smile: I think it is much tidier doing it that way rather than going to purchase route suggest on QF support pages.

I also really appreciate how I can future date Journal entries! Something that really bugged me with purchases. I like to be organised!

Journals are really only meant for things that are not physical purchases of something. Like if your claiming milage allowance for example. Or bank charges.

Yes the working from hhome allowance is still based on the tax year regardless of business set up as far as I’m aware. So the same periods apply.

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