I've just secured my first client and am rather nervous about getting everything right for him. I receievd the message below from him earlier. I'm going to enter everything into Sage Instant Accounts. Do I need to know from him any previous years figures or not? He states 25% of petrol is private so I would calculate 75% of the petrol receipts and enter them to the nominal code of 7400 travelling? As he says, do I need the mileage figures or is just the petrol receipts ok? Finally regarding his heating/lighting costs should I enter an agreed allowance figure and post half to the electricity account nom code 7200 and the other half to the either oil or gas account? Thank you for your help in advance
Virtually a whole yr, Ltd Co, I own all the shares, not vat registered,
Separate Bank account
I do not want every tiny bill shown on the schedule , its just pointless so please bundle them up Im sure u know the sort of thing stationery, travel, etc rather than individual items. With regard to petrol I guess about 25% is private Do you need mileage figures? The business is run from home but I suggest you just put in a nominal sum for heating and lighting.
Actually would I need the business mileage then I could times that by the inland revenues 40p per mile and enter the total into travelling? Instead of the petrol costs?
Regarding the heating/lighting costs I noticed in another thread that it says to create another nominal code called using home as an office. Does this need to be done or is what I posted earlier ok?
It will be good if you can get the business mileage figure and multiply by the 40p to charge to the profit & loss account. The rest can go to his drawings for personal usage (from the petrol charges).
The rule for use of home is about £3 per week so you looking at £156 approx for the cost. (plz cross check the figure is it £2 or £3 per week as its been a while i workd on it )
You can create a new nominal heading by ' Use of home' and plug these cost there. What you did earlier was adding the use of home cost into your business related electric , heating cost. So the second option is the best for a clear picture of the business.
