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Not sure how to record and pay expenses

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That is correct - no money actually changes hands when you "pay" the home office expense from your proprietor drawings account, but it will reduce your taxable profit for the year, thus reducing the amount of income tax you'll need to pay.

If you do actually want to take the money for this "expense" out of the business then you can but it won't make any difference to your tax position as transfers between you and your business don't affect the P&L. I would record the expense as paid from the drawings account, then tag any money you took out as a transfer from current account to drawings.


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