Use of Home Allowance - Accounting Code?

Question asked by Maria Ingold 10 years ago

Hi again,

I take my Use of Home allowance for the year all at once. So, it's essentially been accruing virtually in my Director's Loan Account and I pay it to myself some time after the end of the year.

I'm not sure what Account Code to use as I don't see a "Use of Home as Office" code which I used previously. Is there a specific code, or do I need to add this one too?

Thanks, Maria

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4 Replies

Set up a Use of Home as Office recurring journal:

Dr Use of Home as Office Cr Director's Current a/c

when your Director's Current a/c is in credit you can transfer the money to your personal bank account or pay yourself some other way.

Best answer
10 years ago

Hi Maria - this is a tax question, specific to each type of business and so, for example, the tax treatment for "use of home" in a sole trader business is different to its treatment in a Ltd Company, where it can end up as rent.

Once you have decided what it is, it becomes just like any other expense in the books, ie there's no special treatment or need for a toggle.

10 years ago

Thanks. I have already spoken to accountants. My main concern was representing it in the ClearBooks system.

As Use of Home As Office is a very standard thing used by anyone working from home I thought you might have something that dealt with it - like a toggle setting or special tax code. I didn't want to miss something you had already set up.

Kind regards, Maria

10 years ago

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