I have a general expenses file for a new client who runs 2 holiday cottages. The General expenses are usually split 50/50 into each business - this was how it was done with the bookkeeper before me and seems like the accountant is happy with it.
The difference this year is one of the businesses finished in August so was only running for the first 5 months of the tax year.
So what I started doing was dividing each expense figure by 17 (12 months one business and 5 months the other) and multiplying by the months in business i.e. 12 and 5
I'm going to feel a but embarrassed telling the accountant this is what I have done - so I am wondering if there is a better way to do this? My maths is very rusty and I can't work out the percentage each business should be.....
I think (but really not sure) that the business that has been running for the full 12 months should be 70% (12/17*100) and the other of 5 months should be 30% (5/17*100)
I personally would be working out what was actually spent in the first 5 months and splitting it 50/50 and then taking the further 7 months costs at 100% to the remaining cottage
