Home used as office

[Allen0805]

Hello everybody,

Just a quick question if any can help.

I am a sole trader and use my home as an office. Having looked through this website (which is absolutely brilliant), i think i have managed to work out what i can claim for and how to work it out.

The only thing that i am struggling with is entering these expenses into sage.

I have tried to work it out and have come up with the following.......

I credit capital introduced and debit the expense account. With this being the case, do i need to keep copies of all the bills that i am claiming for???

Also my accounting period is 01/11/09 to 31/10/10 - how would i put these expenses into the accounts to work it out for my SA for the 5 months to April??

Surely i would divide the costs over the 12 month period and just include the 5 months to April.

Is this correct??

Thanks for your help

[elainec100@cheapaccounting]

I credit capital introduced and debit the expense account. With this being the case, do i need to keep copies of all the bills that i am claiming for???



yes you do need to keep supporting documentation for the calc

As regards your accounts - why did you set your year end as 31/10/10.

At the moment you have a different year end to 05/04 - so you would use this on the self assessment as your basis period.

Read here for more:

http://www.hmrc.gov.uk/helpsheets/hs222.pdf

[Allen0805]

i used 31/10/10 as my year end as this will be a years set of accounts - is this wrong then?

What would you advise me to do?

Thanks

[MyAccountantOnline]

If you are doing your own tax return using a period end of 5th April is much easier as their are rules for apportioning accounting periods to match the tax year which, with respect, arent very easy for non-accountants.

If you are doing your own accounts/tax returns I'd suggest you stick to 5th April.

[Williams lester]

If you are doing your own tax return using a period end of 5th April is much easier as their are rules for apportioning accounting periods to match the tax year which, with respect, arent very easy for non-accountants.


I have also met a good few accountants who don't understand the apportioning rules!

[MyAccountantOnline]

I have also met a good few accountants who don't understand the apportioning rules!

Shameful! (hopefully not qualified ones)

[Williams lester]

Shameful! (hopefully not qualified ones)

A couple yes. Including one who lectured on accounting.

[Allen0805]

isn't it a little late for me to change my year end now? i mean if i wanted to change it to the 5th april this year, would i be fine now?

Alos, with you saying it being easier i can now just apportion my expenses for the 5 months cant i an with regards to depreciation on my computer etc, would i put a years dep'n through or apportion that as well?

Thanks

[MyAccountantOnline]

isn't it a little late for me to change my year end now? i mean if i wanted to change it to the 5th april this year, would i be fine now?

Alos, with you saying it being easier i can now just apportion my expenses for the 5 months cant i an with regards to depreciation on my computer etc, would i put a years dep'n through or apportion that as well?

Thanks

I had assumed it was your first tax return/period of self employment.

You can change a year end but again special rules apply.

Dont forget you wont apportion depreciation for tax purposes - its not an allowable expense you will need to calculate capital allowances if appropriate on equipment purchased etc.