expenses

[hxsarge]

what can you get away with classing as business expense? like using a home office for work? power tools? i have heard story's of people having 50 percent of there gas and electric bill for the home office?

cheers

 

[PC Electrics]

Good story, but unlikely to be true.

There's a wealth of information on the HMRC website.

Better still, ask your accountant, that's the best place to go for sound financial advice of this sort.

This is a huge subject.

 

[SPECIAL LOCATION]

what can you get away with classing as business expense? like using a home office for work? power tools? i have heard story's of people having 50 percent of there gas and electric bill for the home office?cheers

If someone is claiming 50% of their fuel bills as work expenses that would suggest that for 4 or 5 days per week its is manned for 8hrs + per day only by persons doing work for the company.....

At which point I would think the Local council would be interested in the change of use from a domestic dwelling to a commercial property...

And they will be wanting some business rates off you as well!!!!!

You CAN claim a reasonable percentage.. BUT...

you have to be sure it is reasonable and you can justify it......

try a simple time calculation..

lets say you are doing 1, 2 or 3 hours administration each day in relation to the business...

that could be 7hrs, 14hrs or 21hrs per week out of 168 hours...

(7/168)x100 = 4.1%

(14/168)x100 = 8.3%

(21/168)x100 = 12.5%

Obviously when you are out at customers.. all your home fuel is private!

But also

when you are in doing admin work..

If other family members are home then technically some of that heat & light is private AND business..

Not purely business even though you are working at home.

You need to have a reasonable figure, not to low or high..

because once you have been working for a while this figure would be reasonable constant.

You don't want to undercharging yourself..

But it can be harder to justify increasing the figure!

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