I've marked "Use Of Home" costs as out-of-pocket expenses, is this right?

[tesala]

Hi,

I am the sole director of a limited company and work from my home office. I am looking to claim back a portion of 'Use Of Home' expenses for rent, council tax, energy bills, home insurance and broadband. As these payments come out of my personal bank account, I've marked them as benefit in kind expenses in my accounting software, rather than bank payments if they'd been paid from my business account.

My question is can I claim these expenses this way, would I need to include the in my P11 form at the end of the year, and what are the tax implications?

[velcro]

No, you can't claim this way. Hopefully you have an accountant who will confirm the only current claim you can make is £26 per month expenses for using your home as an office (not as a BIK).

[northernladuk]

What does your accountant advise? You really should have one if you are unsure about stuff like this.

They will generally say no and just claim the £6 a week as per this link below

https://www.gov.uk/tax-relief-for-em...orking-at-home

[Maslins]

I am the sole director of a limited company and work from my home office. I am looking to claim back a portion of 'Use Of Home' expenses for rent, council tax, energy bills, home insurance and broadband. As these payments come out of my personal bank account, I've marked them as benefit in kind expenses in my accounting software, rather than bank payments if they'd been paid from my business account.

My question is can I claim these expenses this way, would I need to include the in my P11 form at the end of the year, and what are the tax implications?

In short, no, don't think you've gone the right way about this. If you can, scrap what you've done in the company books.

Are you using FreeAgent? If so, under "My money" --> "Expenses" add in the use of home expenditure you're claiming. Generally we'd suggest you go for the fixed amounts suggested, irrespective of what your personal bills actually are. We'd also suggest just doing this once/year, for 52 x the weekly amount. The company can then reimburse you for that as/when appropriate (timing of this not important). Nothing to declare on a P11D, or your personal tax return. The company gets corporation tax relief (but no VAT reclaim) on the amount, no further disclosures required.

[northernladuk]

In short, no, don't think you've gone the right way about this. If you can, scrap what you've done in the company books.

Are you using FreeAgent? If so, under "My money" --> "Expenses" add in the use of home expenditure you're claiming. Generally we'd suggest you go for the fixed amounts suggested, irrespective of what your personal bills actually are. We'd also suggest just doing this once/year, for 52 x the weekly amount. The company can then reimburse you for that as/when appropriate (timing of this not important). Nothing to declare on a P11D, or your personal tax return. The company gets corporation tax relief (but no VAT reclaim) on the amount, no further disclosures required.

OP. If you haven't got an accountant then ring this one pronto.

[TheCyclingProgrammer]

No, you can't claim this way. Hopefully you have an accountant who will confirm the only current claim you can make is £26 per month expenses for using your home as an office (not as a BIK).

This isn’t the only way you can do it, but it’s certainly the recommended way for most people.