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Posted Mon, 22 Jan 2024 14:36:56 GMT by
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
Posted Thu, 25 Jan 2024 11:52:45 GMT by HMRC Admin 2
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.

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