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David Pallett
Level 1

Home Office Expenses

I'm a sole trader and have just signed up to Quick Books Self employed.

 

I've always put a percentage of my household bills on my expenses to cover the part of my home which is dedicated to being my office.

 

I've tried doing the same using QB and listing it as "Home Office Expenses", but it's showing up as disallowable.

 

It's also doing the same thing for anything I put down as a meal expense.

 

Anyone know what I'm doing wrong? 

Solved
Best answer October 02, 2020

Accepted Solutions
John C
QuickBooks Team

Home Office Expenses

HI SC Sarah The self employed system defaults to the simplified expenses method to calculate 'Hoime Office Expenses'. This method is only used for people that work 25 hours or more from home/enter 25 or more hours in the 'Do you work from Home' field within the taxes profile.If you don't use this method you'll have to categorise your transactions as Rents/Utilities/Insurance.

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17 REPLIES 17
torialysaght
Level 1

Home Office Expenses

Hi David, I'm having this problem too, when I know it's allowable?  Did you find out how to resolve the issue?

Thanks

David Pallett
Level 1

Home Office Expenses

I eventually found a solution to the problem.

 

In your tax profile you have to specify that you work from home 25 hours a week and it will sort it all out automatically.

 

No idea why it works like that, a home office is an office no matter how much time you actually spend there

SC Sarah
Level 1

Home Office Expenses

I'm having the same problem, I work 220 hours a month from home and I can't claim food ,phone or office supplies! I'm getting a bit stressed!

John C
QuickBooks Team

Home Office Expenses

HI SC Sarah The self employed system defaults to the simplified expenses method to calculate 'Hoime Office Expenses'. This method is only used for people that work 25 hours or more from home/enter 25 or more hours in the 'Do you work from Home' field within the taxes profile.If you don't use this method you'll have to categorise your transactions as Rents/Utilities/Insurance.

SC Sarah
Level 1

Home Office Expenses

Thank you, I'll try that on a weekly entry then as I do 55 hours a week. It did ask for a monthly figure, so I've put 220, so confused.

SC Sarah
Level 1

Home Office Expenses

It's still not working. its asked for a monthly hours total, so I have entered 220

Also its asking if i started working after 5/4/19, ive entered no, my business started in 2004 

SC Sarah
Level 1

Home Office Expenses

Hi!, 

It's still not working, its asked for a monthly hours total, so I have entered 220, it also didn't work when I put the weekly hours of 55 in.

Also its asking if i started working after 5/4/19, I've entered no, my business started in 2004 

GeorgiaC
QuickBooks Team

Home Office Expenses

Hi SC Sarah, 

 

Can I check if you use the simplified expenses method? 

SC Sarah
Level 1

Home Office Expenses

Yes please  

SC Sarah
Level 1

Home Office Expenses

sorry , I don't understand.

I know as a Childminder HMRC allow me to claim 10% on heating and council tax, but quick books .  says disallowed. im also having trouble with home office and phone  .

Thank you

GeorgiaC
QuickBooks Team

Home Office Expenses

Hi SC Sarah, 

 

Great, thanks for confirming - you may find this link here helpful, with the simplified expense method, you're only able to claim anything equal to or over 25 hours per week working from home, and a proportion of the expenses which you categorise as Home Office expenses will be allowable and the other proportion will be disallowable. 

 

Please get back to us below if you have any questions on this. :smiling_face_with_smiling_eyes:  

SC Sarah
Level 1

Home Office Expenses

Thank you!

jen1012
Level 1

Home Office Expenses

Hi, the link as posted by you guys says that if you work over 50 hours you can claim £18, but it's not reflected in your software. So how do you go about that? Thanks

GeorgiaC
QuickBooks Team

Home Office Expenses

Hi jen1012, we'll automatically calculate this on your tax report if you've chosen to use the 'work from home' feature within the Tax Summary - if this is left blank, you can continue to categorise your transactions as usual to claim the actual expenses (not via the simplified method) instead. 

jen1012
Level 1

Home Office Expenses

Sorry but neither has completely worked for me. If you don’t use the home office function in the tax profile it will put everything in the disallowed category. I’m not sure how you work with different hours worked for each months. Some months there are over 25 and others over 50. You don’t seem to allow for this difference? Thanks 

John C
QuickBooks Team

Home Office Expenses

Hi jen1012 The self employed product defaults to the simplified expenses method which is if you work 25 hours or more within the month and the appropriate deduction will be applied. QuickBooks doesn't account for fluctuations on a monthly basis. We advise you to contact HMRC to establish whether an average throughout the year can be applied. 

If you don't use the simplified expenses and enter 0-24 hours within the 'Do you work from home' field any transactions you enter as Home office expenses will be disallowable and therefore you'll have to categorise them as Rent/Utilities/Insurance and the transactions will be allowable. 

jen1012
Level 1

Home Office Expenses

Thank you, this is really helpful. 

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