I'm having issues with the rent I pay for my workshop categorised under Rent/Utilities/Insurance is classified as a disallowed expense. This certainly isn't right bu HMRC rules, and as my single biggest overhead expense it's difinitely a problem I need to solve.
It seems other people have had similar problems but I haven't been able to find any kind of solution.
Hello Tom Padfield, thanks for posting on the Community page, so it will be down to the hours worked from home, so if you have over 25 hours in the tax profile which you do as it says you have 32 hours at home, then qb will use simplified expenses as per hmrc it calculates based on the hours so 12 x 10 pound ( the rate for 25-50 hours from home) = the 120 allowable https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home when you add hours to the tax profile it works out a flat rate. So to sum it up for you. Because you are over the 25 hours of allowable that’s why it is showing it as disallowable, so you just then get the flat rate of 10 pound per month for the year based on that 32 hours which is where that 120 comes from and why there is not a separate 120 on the p and L.
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