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lynn-bowden1-bti
January 26, 2021
Question

Home as office showing as disallowed

  • January 26, 2021
  • 1 reply
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Original commenter did not share additional details

1 reply

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Ashleigh1
January 26, 2021

Hello Lynn-Bowden1-bti, 

 

Welcome to the Community page, 

 

Could you please give us some more information on what your issue is? 

 

Are you saying that when you select office it is showing as disallowed and is meant to be allowed for you?  

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sherylcookson
April 27, 2022

My Tax Summary report puts my Home Office Expenses (as i use actual costs in one transaction at the end of each year, rather than the simplified flat rate) in the Disallowed Column too. If I do use the flat rate (by entering Hours Worked From Home in my Tax profile) It does enter a fixed figure in the Allowed Expenses Column. Why is this when the carefully calculated 'reasonable' costs for hOme Office Use are an allowed expense, does QBSE not allow it??

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Ashleigh1
April 27, 2022

Hello Sherylcookson, thanks for posting on this thread so Simplified Expenses also apply to Rent, rates, power and insurance costs/ Rent/Utilities/Insurance (box 21)
IF YOU ENTER 25 OR MORE HOURS in the ‘Do you work from Home’ field within the taxes profile and you categorise transactions as Rent/Utilities/Insurance/ ‘Rent, rates, power and insurance costs’ the system will start calculating using the method in the link below, a percentage will be allowable and the remaining amount will disallowable (box 36)(We are not able to change this).
If you enter 0-24 hours within the ‘Do you work from home field’ all transactions categorised as Rent/Utilities/Insurance will be allowable.
https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home
This is also a useful link:
https://www.gov.uk/expenses-if-youre-self-employed/office-property
Anything that is categorised as ‘Home office expenses’ will be automatically disallowed due to using simplified expenses no matter how many hours you have entered in the ‘Do you work from home field’ (similar to vehicle expenses) If the customer doesn’t use simplified expenses in relation to Rent/Utilities/Insurance/ ‘Rent, rates, power and insurance costs’ the customer will have to use the Rent/Utilities/Insurance category when adding transactions relating to Home office expenses.

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