diff --git a/plasmoid/CMakeLists.txt b/plasmoid/CMakeLists.txt
index 1e27747..340fba5 100644
--- a/plasmoid/CMakeLists.txt
+++ b/plasmoid/CMakeLists.txt
@@ -65,7 +65,7 @@ endforeach ()
 plasma_install_package("${PLASMOID_PACKAGE_DIR}" "${META_ID}")
 
 # add target to ease testing the plasmoid (see testing.md)
-set(PLASMOID_TESTDIR "${CMAKE_CURRENT_BINARY_DIR}/testdir" CACHE STRING "specifies the Plasmoid test directory")
+set(PLASMOID_TESTDIR "${CMAKE_BINARY_DIR}" CACHE STRING "specifies the Plasmoid test directory")
 file(MAKE_DIRECTORY "${PLASMOID_TESTDIR}")
 add_custom_target(init_plasmoid_testing
     COMMAND "${CMAKE_CURRENT_SOURCE_DIR}/scripts/inittesting.sh" "${PLASMOID_CONFIG_TARGET_FILE_ABSOLUTE_PATH}"
diff --git a/plasmoid/scripts/inittesting.sh b/plasmoid/scripts/inittesting.sh
index d4f4535..4c58561 100755
--- a/plasmoid/scripts/inittesting.sh
+++ b/plasmoid/scripts/inittesting.sh
@@ -1,16 +1,17 @@
 #!/bin/bash
 set -e
+script_dir=$(dirname "${BASH_SOURCE[0]}")
+source "$script_dir/settestenv.sh"
 
 # use the package dir within the source-tree so one does not need to run CMake again for updating
 # build-tree copy all the time
-package_dir=$(dirname $0)/../package
+package_dir=$script_dir/../package
 
 # copy the generated desktop file back into the source-tree package dir so it can actually be used
 meta_data_file=$1
 cp --target-directory="$package_dir" "$meta_data_file"
 
 # install or update the package into the working directory
-export HOME="$PWD"
 if ! plasmapkg2 --install "$package_dir"; then
     plasmapkg2 --upgrade "$package_dir"
 fi
diff --git a/plasmoid/scripts/settestenv.sh b/plasmoid/scripts/settestenv.sh
new file mode 100755
index 0000000..5dad8c6
--- /dev/null
+++ b/plasmoid/scripts/settestenv.sh
@@ -0,0 +1,22 @@
+#!/bin/bash
+set -e
+
+# use a sub directory within the build directory which is supposed to be $PWD
+echo $PWD
+export HOME=${TEST_HOME:-$PWD/plasmoid-testing}
+echo "HOME directory used for Plasmoid testing: $HOME"
+mkdir -p "$HOME"
+
+# unset XDG_DATA_HOME and XDG_CONFIG_HOME to use Qt's default relying on just HOME (see qtbase/src/corelib/io/qstandardpaths_unix.cpp for defaults)
+export XDG_DATA_HOME=
+export XDG_CONFIG_HOME=
+
+# set QT_PLUGIN_PATH if it has not already been set
+if ! [[ $QT_PLUGIN_PATH ]]; then
+    if [[ -f $PWD/syncthingtray/plasmoid/lib/plasma/applets/libsyncthingplasmoid.so ]]; then
+        export QT_PLUGIN_PATH=$PWD/syncthingtray/plasmoid/lib
+    elif [[ -f $PWD/plasmoid/lib/plasma/applets/libsyncthingplasmoid.so ]]; then
+        export QT_PLUGIN_PATH=$PWD/plasmoid/lib
+    fi
+    echo "QT_PLUGIN_PATH used for Plasmoid testing: $QT_PLUGIN_PATH"
+fi
diff --git a/plasmoid/scripts/starttesting.sh b/plasmoid/scripts/starttesting.sh
new file mode 100755
index 0000000..c6b9950
--- /dev/null
+++ b/plasmoid/scripts/starttesting.sh
@@ -0,0 +1,5 @@
+#!/bin/bash
+set -e
+script_dir=$(dirname "${BASH_SOURCE[0]}")
+source "$script_dir/settestenv.sh"
+exec "$@"
diff --git a/plasmoid/testing.md b/plasmoid/testing.md
index e344baf..e6d4a04 100644
--- a/plasmoid/testing.md
+++ b/plasmoid/testing.md
@@ -4,19 +4,24 @@ The following instructions allow to test the Plasmoid by installing it in a test
 rather than the regular home to separate testing from production.
 
 1. Build as usual, ensure `NO_PLASMOID` is turned off
-2. Add build step to execute custom target `init_plasmoid_testing` which
-   will install the Plasmoid in a test directory which is "$BUILD_DIR/plasmoid/testdir"
+2. Add build step to execute the custom target `init_plasmoid_testing` which
+   will install the Plasmoid in a test directory which is `$CMAKE_BUILD_DIR/plasmoid-testing`
    by default
-3. Add new config for run in Qt Creator and set `plasmoidviewer` (or `plasmawindowed`)
-   as executable
-4. In execution environment, set
-  * `QT_PLUGIN_PATH` to `$BUILD_DIR/plasmoid/lib` which should be containing the plugin
-    for the Plasmoid under `plasma/applets/libsyncthingplasmoid.so`
-  * `QT_DEBUG_PLUGINS` to 1 for verbose plugin detection
-  * `HOME` to the test directory from step 2 so plasmoidviewer finds the Plasmoid
-    in the test directory
-5. Set `--applet martchus.syncthingplasmoid` as CLI argument
-6. Ignore warning that executable is no debug build, it is sufficiant when
+3. Add new config for run in Qt Creator and set `bash` as executable
+4. Set `%{sourceDir}/../../syncthingtray/plasmoid/scripts/starttesting.sh plasmoidviewer --applet martchus.syncthingplasmoid`
+   as CLI argument
+  * It is also possible to use `plasmawindowed` or `plasmashell`, see sections below.
+  * This usage of `%{sourceDir}` assumes one used the "Building this straight" instructions
+    from the main README.md.
+5. Keep `%{buildDir}` as working directory.
+6. In execution environment there's nothing mandatory to be set because `starttesting.sh` should
+   already take care of setting the environment.
+    * The home directory is set in accordance with the directory used in step 2. but can be overridden
+      by setting `TEST_HOME`
+    * If not already set, `QT_PLUGIN_PATH` is set to `$CMAKE_CURRENT_BINARY_DIR/plasmoid/lib` which
+      should contain the plugin for the Plasmoid under `plasma/applets/libsyncthingplasmoid.so`
+    * `QT_DEBUG_PLUGINS` to 1 for verbose plugin detection
+7. Ignore warning that executable is no debug build, it is sufficiant when
    the plugin is a debug build (see next section for QML debugging)
 
 ## Saving/restoring settings