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Daniel PM
Level 1

Utility bills in self assessment

Hi all

We need to complete a self assessment for HMRC as a sole trader. We would like to add 10% of our utility bills (mainly electricity) as a expense. We pay all our utilities via personal account not connected with QB or our business (which we have a dedicated account for). What is the best way to do this? Thanks

QuickBooks Team

Utility bills in self assessment

Let me help you record these expenses in QuickBooks Online, @Daniel PM


Although we won't recommend mixing business and personal funds, we know it happens sometimes. When recording your Utility bills, you can write a cheque or create an expense in QuickBooks. Depending on how you record it in real life, use either your personal or business accounts. 


Here's how to utilities using your business account:


  1. Select + New and click Expense or Cheque.
  2. In the Payee field, select the supplier and choose the account you used to pay for the expense in the Payment account field.
  3. Enter the date for the expense in the Payment date field.
  4. Select how you paid for the expense in the Payment method field.
  5. In the Category dropdown, choose the expense account you use to track utility bills. T
  6. Enter the Amount and VAT.
  7. When you're done, select Save and close.


When paying business expenses with personal funds, you can follow the suggested steps in this article to record them: Pay for business expenses with personal funds.


I'd also suggest getting in touch with your accountant if you're not sure about these processes. That way, we can ensure your books are accurate. 


For additional reference, you can check out these articles:



I always check for notifications to reply to all responses. That said, feel free to leave a comment if you have any more questions. I'm happy to help you again. Be safe, Daniel PM.

Level 8

Utility bills in self assessment

Hi @Daniel PM 


You're simply looking to get the tax relief on the business use?

There's no real need to enter this into QBO/QBSE - this can simply be entered on the SA form at the end of the year.


If you would prefer to enter into QBO/QBSE simply enter it as an expense the same as any other - then pay it to yourself.  Effectively, that's what you're doing - the business is paying for 10% of the utilities.


You will need to keep some evidence that 10% is a reasonable figure.


Hope this helps.

Daniel PM
Level 1

Utility bills in self assessment

Hi @ReymondO 

This is great, thanks.

I checked the links provided and using a journal entry and then expense recording, seems the most efficient way forward. 

I am curious, as we are not VAT registered, do we need to record VAT as well? 


Daniel PM
Level 1

Utility bills in self assessment

Hi @paul72 

Essentially yes, tax relief purposes. 
However I was under the impression that our bookkeeping records in QB should match what we insert for our SA. As then you would be easily go back and review any values. 
Learning the ways of taxing using SAs still, happy to hear any hints/suggestions. 

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