How to split GST on farmhouse expenses
This article shows you how to split GST between business (claimable) and personal portions on farmhouse expenses such as electricity, phone, insurance etc.
To calculate the portion you can claim as a business expense, we strongly recommend you have a conversation with your accountant.
Split GST in a code
Setting up a GST split in a code means that every time you use the code in a transaction, it will automatically split the amount between business and personal.
In the example below, we will split the GST on house electricity between business and personal.
- Click on Setup - Codes
Locate the Electricity category code and expand it to display the Farm and House extended codes.
Double click the House extended code to edit it.
Click on the Split button.
Allocate the GST type and percentage to the applicable category and extended codes.
Click OK to save the changes.
TIP: For the personal portion of farm expenses use the GST type P and the category code PE - Personal, as well as an extended code. In management reports, this will give you an accurate view of farm expenditure excluding any personal expenses.
Split GST in a transaction
If a GST split hasn't already been created within the extended code, you can split an amount when you're creating the transaction.
While in edit mode, highlight the transaction line you want to split.
Right click your mouse in the blue part of the screen.
- Allocate the GST type and percentage to the applicable category and extended codes.
TIP: You can also use the split setup in the future by ticking the box 'Use this split next time code xx:xx is used?'.
- Click on OK to save the changes.