Allowed and disallowed expenses

Working from home - 20% space used for business. turnover say £30,000.00. Property rental total £10,000 so Business allowable expense = £2,000, Private disallowed expense = £8,000 Using the on-line HMRC entry portal If I put £2000 in the allowed expense then taxable income goes gown to £28,000 but if I also put £8000 in disallowed expenses then taxable income goes up to £36,000, which is clearly wrong, it's more than my turnover Should I just leave out the disallowed expense of £8,000 or should i put the full rental amount of £10,000 in the allowed expenses so my taxable income goes down to £20,000 and then let it deduct the £8,000 disallowed expense, bringing the taxable amount to the correct £28,000

Hi,

You need to declare both allowable and disallowable expenses.

You can find guidance here:

HS222 How to calculate your taxable profits (2023)

Thank you.

I have the exact same question as the original poster, however the answer posted is not completely clear. From the linked guide, I see "If you include all of the expense when you work out your profit you must add the non-allowable expenses, or non-allowable part of expense, to the profit." Given that sentence is a conditional "if", it sounds like we have a choice: 1. either put all expenses (work plus non-work portions) in the "Total expenses" section, and then put all non-work portions in the "Disallowable expenses" section 2. OR put just work expenses (or portion thereof) in the "Total expenses", and then leave empty the "Disallowable expenses" section Can someone from HMRC confirm that? Thank you.