Profit & Loss Account Questions

Nelly71

Hi, i've got 2 questions:
1) If the total expense is used more for private than business use (such as working from home and claiming for 20% of your ESB bill), would you include 100% of the bill in the P&L or 20% of it?
2) If VAT registered, do you include the refunded VAT in the expense value, or do you subtract the refunded VAT first?
Thanks in advance.

Bold Abdu

Nelly71 wrote: »

Hi, i've got 2 questions:
1) If the total expense is used more for private than business use (such as working from home and claiming for 20% of your ESB bill), would you include 100% of the bill in the P&L or 20% of it?
2) If VAT registered, do you include the refunded VAT in the expense value, or do you subtract the refunded VAT first?
Thanks in advance.

1. 20%
2. If I understand you correctly, ignore the VAT. So if you buy something for €100 + vat of 23% and sell for €150 + vat of 13.3%. Your P&L will say €150 - €100 = €50 profit.

Nelly71

Thanks a lot BA.

1) An Accountant told me to include 100% but it would have changed my profit to a rediculously unrealistic figure. But it seems that we need to do this for the tax return (Form 11) because there's another section for Addons, to take the private element of these expenses into account.

2) Yes, I figured as much about the VAT.

Bold Abdu

Nelly71 wrote: »

Thanks a lot BA.

1) An Accountant told me to include 100% but it would have changed my profit to a rediculously unrealistic figure. But it seems that we need to do this for the tax return (Form 11) because there's another section for Addons, to take the private element of these expenses into account.

2) Yes, I figured as much about the VAT.

1. Well you could deduct 100% and then add back 80% but the same result. But I would just stick the 20% figure on the tax return and do no addbacks.

No offence, but perhaps you should have an accountant look over your return, at least for the first year before filing. Just in case.

Nelly71

Thanks. No money for an accountant this year - maybe next year!