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Simplified expenses if you're self-employed

Question asked by Alan Bennett 2 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

6 Replies

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.

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.

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 - 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.

£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

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