You should enter all receipts inclusive of VAT and make sure you post them all with a T9 tax code which is the non-vatable tax code in Sage.
For example, you buy petrol at £10 net £1.75 VAT, £11.75 gross. You should enter the details as normal and put £11.75 in the net column and choose T9 for the tax code.
If i use my home as an office and i want to claim some of my heat a light etc. Am i right in thinkin that first of all i have to work out the percentage used and then when entering them into my accounts i debit the expense account (heat and light) and credit capital introduced??
Would i also do that on a monthly basis.
Sorry, i just need to be sure as im panicking incase i get something wrong.
Im trying to do my tax return and need to enter my home expenses and i think im on the right lines but not 100% sure.
Yes you can work out the percentage, or you can just base it on a reasonable amount, depends on if you work from home all the time or just occasionally (and probably some other things!) Not too familiar with amounts claimed, maybe someone on here with more experience of that can help.
If you are a limited company I would DR Use of home as office code in the 7xxx on Sage and CR Director's Loan account.
If a sole trader DR Use of home as office as above and CR Drawings.
If you are not VAT registered and using SAGE I would change T1 to 0% VAT, that way (as SAGE defaults to T1 for all transactions) it would save you having to enter T9 for each entry.
Depends on whether it is used solely for business purposes. If so all costs related to it can be claimed. BUT you will also be subject to capital gains tax when you sell the property.
If you use it for other purposes (eg watching TV, listening to music, storing food in a freezer) then you need to apportion the use.
Alternatively you can use the £3 per week for use of home as office to cover all expenses.
