Working from home
If you run the business from home, a share of the household bills may be a business cost. Work out a fair share two ways.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1A share of the bills4 questions
If you do business work at home, part of the cost of running the home can be a business cost. Heating and electricity are examples.
One fair way is to split by rooms and then by time. First find the cost for one room. Then take the share of the time that room is used for the business.
| Bill | Amount |
|---|---|
| Gas | 780.00 |
| Electricity | 660.00 |
Josie's home has 4 rooms. She uses one as an office for bookings and invoices, and it is used for the business 50% of the time.
Task 2A flat rate instead4 questions