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[GQC] Tim

  • Posts: 4536
How are you suppose to apportion a claim for broadband?
« on: April 29, 2014, 07:24:33 pm »
Surely this is all getting a bit ridiculous now with fixed line rentals and unlimited broadband. I don't even have line rental as I've got cable and pay a fixed fee.

For me, personal judgement would say claim for it all, I've got a website, cloud based backup systems, advertising, communication with customers, SEO, etc etc. It's a necessary expense for my business, vital actually. Do I use it for personal use? Well of course, I can't get a second cable line for just business now can I. Proportion it? How exactly? You must be joking Mr. Tax Man?

I'm confident in saying I claim 100%, but if you take any minor expense over several years, add interest and tax geared penalties, well, all of the sudden I'm not so confident!

HMRC :

Quote
Broadband
Expenditure on an internet connection (including broadband and wireless broadband) is allowable to the extent that the connection is used for trade purposes. Where there is 'mixed' (trade/non-trade) use, follow the approach used for telephone rentals.

Telephone
The cost of business calls is allowable. Also allow a proportion of the line rental (based on the ratio of trade use to total use). This proportion should reflect all aspects of use, including incoming calls, though in most cases reference to itemised outgoing calls will provide a reasonable and acceptable measure.

Care should be taken and a flexible approach adopted when considering the level of apportioned trade expenditure, relating to all inclusive packages offered by telephone and broadband providers.

Discuss.

TomCrowther

  • Posts: 1965
Re: How are you suppose to apportion a claim for broadband?
« Reply #1 on: April 29, 2014, 07:29:06 pm »
My accountant allows fifty percent business use for home phone and broadband. He is pretty switched on and as the costs aren't so high it makes sense not to try and claim too much.

[GQC] Tim

  • Posts: 4536
Re: How are you suppose to apportion a claim for broadband?
« Reply #2 on: April 29, 2014, 07:40:13 pm »
My accountant allows fifty percent business use for home phone and broadband. He is pretty switched on and as the costs aren't so high it makes sense not to try and claim too much.

Again, I don't understand why it's for instance 50%? Let's face it, it's really so that HMRC doesn't get difficult about it isn't it? I doubt the average Joe will ever use 50% of broadband for business. Also, from a data perspective, you'd use far more for personal use, much more. I think the business use will probably be in the 1-5% percent range if that.  :-\

Ian101

  • Posts: 7889
Re: How are you suppose to apportion a claim for broadband?
« Reply #3 on: April 30, 2014, 07:07:26 am »
claim it all then gives them summit to find if they ever inspect  ;)

Clever Forum Name

  • Posts: 5942
Re: How are you suppose to apportion a claim for broadband?
« Reply #4 on: May 01, 2014, 07:44:17 am »

♠Winp®oClean♠

  • Posts: 4085
Re: How are you suppose to apportion a claim for broadband?
« Reply #5 on: May 01, 2014, 08:36:54 am »
It's VERY simple, you claim for what you use & if you ever get inpected YOU HAVE to PROVE that fact to counter HMRC reasonable "assumptions".

If you claim 100% for business then you can't even send an email which isn't business associated, or order anything online for personal use etc etc. If anyone calls you, like your mother, then the line has been used for personal use.

I know a guy who claimed 100% for work vehicle, under inspection he admitted calling at shops to pick up groceries etc on his way home- they knocked 10% off right away, backdated it, added interest the lot. Be warned! ;)

You could set up a Vonage (VOIP) service for 100% business use. Works over broadband, very cheap & has quality & features second to none!! We have it. www.vonage.co.uk

AuRavelling79

  • Posts: 26773
Re: How are you suppose to apportion a claim for broadband?
« Reply #6 on: May 01, 2014, 08:57:05 am »
Be "reasonable".

If you have one phone, one computer and one vehicle then make a reasonable estimate.

E.g. Car - work by mileage. If you do 10K a year and 5K is business then 50%

PC - You have "George" on it 100% for work, Word is say 90% work, 10% other, this forum is 100% work (! - except Tosh who never posts about window cleaning - !) - but if you're Squeaky you also use it for facebook (posting up rude pictures of hose, moaning about squaddies and complaining about how cold the weather is on his side of the river) - and Martin 666 (!) posts more God stuff than jw.org!

Then the wife uses it to speak to MiL in Spain. The kids for school. And all the other unspeakable stuff too.

So you look at that and go like 50%.

Now if you have a van for work and a car too then you've more chance of going 100% for work for the van, but unless the car genuinely gets used for work (other than the odd collection or going to the bank) I would leave that out.

If you have a second PC/laptop or a personal mobile device to take George and banking details in the van then I would count those as 100%.
It's a game of three halves!

Paul Coleman

Re: How are you suppose to apportion a claim for broadband?
« Reply #7 on: May 01, 2014, 10:56:06 am »
Be "reasonable".

If you have one phone, one computer and one vehicle then make a reasonable estimate.

E.g. Car - work by mileage. If you do 10K a year and 5K is business then 50%

PC - You have "George" on it 100% for work, Word is say 90% work, 10% other, this forum is 100% work (! - except Tosh who never posts about window cleaning - !) - but if you're Squeaky you also use it for facebook (posting up rude pictures of hose, moaning about squaddies and complaining about how cold the weather is on his side of the river) - and Martin 666 (!) posts more God stuff than jw.org!

Then the wife uses it to speak to MiL in Spain. The kids for school. And all the other unspeakable stuff too.

So you look at that and go like 50%.

Now if you have a van for work and a car too then you've more chance of going 100% for work for the van, but unless the car genuinely gets used for work (other than the odd collection or going to the bank) I would leave that out.

If you have a second PC/laptop or a personal mobile device to take George and banking details in the van then I would count those as 100%.

Pretty similar to how I do things.  Van is my only vehicle so 90%.  Computer/broadband 50%.
With the phones I do it a bit different.  Landline and mobile are both part use.  Due to the possible issues about offsetting landline rental, I book nothing for landline and 100% for mobile (it's PAYG so no rental).  It does work out about right and is simpler.  My mobile usage is light.  If anything, taxman is gaining a bit.  Printer/toner/paper 90% (I print my own leaflets/windows cleaned slips etc.).  I'm told that so long as it's reasonable, a very small discrepancy wouldn't be an issue.  It's quite possible that van might be 87% one year and 93% another (I don't go out in it much except for work).  The town centre/eating places/cinema/bowling alley etc where I might go sometimes are all in very easy walking distance.

sunshine windows

  • Posts: 2361
Re: How are you suppose to apportion a claim for broadband?
« Reply #8 on: May 01, 2014, 12:51:40 pm »
With the amount of time some spend on here, I think 100% is justifiable  :o
To climb mount fuji you must first find a path
(Swindon, Wiltshire)

www.sunshinewindowcleaning.co.uk
www.sunshinesoftwashing.co.uk