Question asked by Alan Bennett 7 years ago
I will claim the flat rate of £18 per month for home office expenses.
What is the best method to show this in Clearbooks please? I'm VAT registered , so do I have to add this to my claim?
Regards Alan
Hi Alan - a recurring expense sounds fine, however, at £18pm I'd usually just add £216 at the end of the year. As it happens the £18 is the same sum that Directors can claim for use of home as an alternative to a more complicated actual expanse calculation, and this is what I do for them.
With regard to VAT, technically, it's still an input to the business, ie an expense, and so probably declarable in box 7 so I'd make it 0%. To be honest though it's not that important and you'll get another accountant saying it's outside the scope.
Best answerThank you Paul
Yes.
£216 sounds like a good idea Paul - all in one go.
Do I then transfer this amount into my personal bank account once a year?
AL
Thanks Paul,
I'll set up a recurring expense then , say for the 1st of each month. The VAT treatment section I'll classify it has 'out of scope - Not on VAT Return.
Sound right?
AL
Hi Alan - I'd use the Purchases > Expenses feature to put the claim though.
The alternatives are to create a bill to yourself for £18 x 12 pa or to just pay yourself out the bank account and explain it as a payment to the use of home account code or whatever it's called in your books.
This is an income tax expense, there's no VAT element you can claim.
You must 