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Handlez
Level 2

How to enter home office rent expenses

Hi everyone. Sorry, another question from me this evening - I'm completely new to this!

 

I've recently gone self employed and I'm currently living at home with parents. My bedroom is half bedroom and half office. I pay my mother rent weekly. It's not a lot, but being a graphic designer I'm obviously using a lot of electric being at home working all day every day. I've split the 'rent' transactions 50/50, half personal and half business expenses under the rent/utilities/insurance category, which I thought was right. However when I click on the 'taxes' tab on Quickbooks Self Employed, under the 'Rent, rates, power and insurance costs' section is shows my business half of the rent as 'disallowable expenses' in the 'other expenses' section. But has a random £157 of allowable expenses under 'home office'.

 

Why is my 50% split of the rent I pay 'disallowable', and where has this random £157 allowable expense come from? In my tax profile in the 'do you work from home' box I've entered 160 hours per month. Not sure if that's anything to do with it or not...

 

Any help would be appreciated!

1 REPLY 1
BettyJaneB
QuickBooks Team

How to enter home office rent expenses

Thanks for choosing QuickBooks to help you with your accounting needs, @Handlez.

 

It's my priority to help you keep your records accurate. I've got some insights to share with you on how the system tracks expenses for work from home set up. 

 

The information entered on your Tax Profile determines whether or not an expense is allowable. Let’s ensure it’s set to less than 25 hours, so your transactions will be categorized properly. The program is compliant with the SA103F deduction categories that you can claim as allowable expenses.

 

If you entered more than 25 hours, the system will set your Rent/Utilities/Insurance expenses as disallowable. To learn more about the work from home deductions in QBSE, you may read through this link: Hours you work from home each month.

 

On the other hand, to ensure the best course of action that you're going to take in this situation, I recommend consulting your accountant. This way, you'll be able to confirm the specific operation, and the data are managed properly for your tracking and reporting needs.

 

I'm here anytime you have other concerns, @Handlez. Have an awesome day.

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