Hello, I am new here and would like to ask for some help please.
After a period of not being to find a job following redundancy I am exploring the idea of becoming self employed. I know nothing about keeping accounts and running a business - yet - but have read lots and am keen to learn more. There are some things I just cannot get to grips with and would like to ask for help.
I will be working from home and wonder how and what percentage of household bills can be claimed through the business. Phone,internet, electricity and anything else that is possible but I do not know about as yet.
Presuming that an income will be forthcoming, funds will be required to live. ie petrol, food. Is it a case of buying these items on the business debit card or some other way.
I know these questions seem a bit odd to those who know, but I just can't work this out. I want to do things correctly.
I do have other questions, but will wait a while for those.
The percentage of household expenses you can claim will depend on the amount of space you use within your home for your business and how often you use it.
You can put through a nominal sum of £3 (although others have managed more without question) per week without really worrying too much about this calculation.
With regards to living expenses, I personally would not use your business account to pay for these as it will soon become confusing. Rather withdraw the total amount of money you need from the business account and either pay cash or use your personal account. This is then recorded in your books as drawings.
This answer assumes you are a sole trader, if you are not then this will be slightly different.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
