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Lededje
April 4, 2022
Question

Separating business portion of an expense

  • April 4, 2022
  • 1 reply
  • 0 views

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

    P
    Pickle
    April 7, 2022

    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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