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Lededje
Level 1

Separating business portion of an expense

I am a VAT-registered sole trader using QB online. I need to separate the percentage of various expenses used for business and personal use (e.g. phone, broadband etc). I have a linked bank account that shows the whole amount for each expense - if I split the amount, how do I account for the personal portion so it's not included in the tax calculation? Also, is there a way to split the amount by a certain percentage without having to have a separate spreadsheet to calculate the values? Thanks.

1 REPLY 1
Pickle
Level 3

Separating business portion of an expense

You enter the bill on different lines, for example - BT Bill is £60, inc VAT

so £40 business

and £20 private for example.

Enter a bill for BT, one line for telephone £40 with VAT inclusive = VAT £6.66, net 33.33

another line for Drawings for £20 (No VAT)

 

If you can do this in excel you should be able to do it in QBO 

 

I

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