[windows_chepstow]

I thought this may be worthy of a post of its own.

In another post I read the following:

Quote from: neil100 on Today at 07:00:48pm

Yes Dave the Tax man will allow me £250 against Tax but my accountant put down £800.

The Tax man quotes a certain case that has been to court and they apply the courts ruling on the matter.

So I have to pay Tax on £550, plus a peanalty for it being wrong,plus intrest plus because its wrong they will now look up to another 5 years of my accounts. They will find the same discrepancy, So times the £550 by a Total of 6 years plus 6 years peanaltys plus intrest, I am looking at a big tax bill, All because the accountant got it wrong.

Nel.

Then David of St Ives said:

Yes £800 is exessive i think mine was about £260 including the phone.

Dave

Now I've never claimed a penny for the house I live in, even though I use it to run my business from.  I use it as storage for my kit and for admin.

I'd normally claim about 10% of my phone bill.

But do you think I could claim a percentage of my rent (hopefully mortgage soon) as a business cost? 

[Moderator David@stives]

Tosh

The answer is no

I claimed £260 last year for use of home and about £150 for the phone.

I would reccomend an accountant, they will save you some money.

I will dig out my accounts later and list my expenses for last year

[windows_chepstow]

The answer is no

I claimed £260 last year for use of home

Dave why the difference, as in why could you claim, but no to me.  Not fair!

Next year I will definately use an accountant; but not this year.

[Moderator David@stives]

Tosh

You could claim the £260 the same as anyone else wether you rent or buy, I thought you wanted to claim a quater of your rent or something.

Basically you are claiming for a bit of heating to keep you warm, a little bit of light and a corner of a room to do your accounts, works out about £5.00 a week , phone is separate , i should claim for most of mine because if it werent for thew business i wouldnt have a phone.

Dave

[dai]

I was thinking today. My washing machine has packed in, just 3 years old.
With all the hammer washing machines get with sill cloths and scrims, It's no wonder.
Can we claim anything towards our washing machine costs?
If we were to buy a machine, and keep it in the garage just for washing our cleaning gear, We should be able to claim the total costs including electricity. Dai

[Jason Atwell]

Is there not a list of what we can and cant claim?? And if not, could some one possibly create one, think it would help alot of people!
I am going on a tax course which is free, just phone and ask your local tax office!

[Moderator David@stives]

Dai

Say your washing machine was £300, thats £100 a year and say 25 % was business use that equals £25.00 against your tax take off 22% for tax and 8% for ni that is 30% of £25

so that is £7.50 off your tax bill , Is it really worth annoying the tax man,

The electric would probably come within use of home as office

[windows_chepstow]

Tosh

You could claim the £260 the same as anyone else wether you rent or buy, I thought you wanted to claim a quater of your rent or something.

Basically you are claiming for a bit of heating to keep you warm, a little bit of light and a corner of a room to do your accounts, works out about £5.00 a week , phone is separate , i should claim for most of mine because if it werent for thew business i wouldnt have a phone.

Dave

Cheers, Dave; top post.

[Jake]

My tuppenceworth

You won't annoy the taxman, by rightfully claiming as tax deductable, any expenses that you incur to run your business.

A room used as office, telephone, diesel, washing machine, computer, pens, paper, vehicle, put it down as expenses...it's your right!


                                                           Rgards.............Jake

[Paul Coleman]

I was thinking today. My washing machine has packed in, just 3 years old.
With all the hammer washing machines get with sill cloths and scrims, It's no wonder.
Can we claim anything towards our washing machine costs?
If we were to buy a machine, and keep it in the garage just for washing our cleaning gear, We should be able to claim the total costs including electricity. Dai

I claim a small proportion of my washing machine against tax (whilst noting that it is a capital item).  I claim the same proportion for any repairs to it as well.  Apart from its normal usage it gets used for washing my overalls and some cleaning cloths.  I even keep receipts for the washing powder and book a proportion of that.  It's perfectly legit and it is reasonable to do so because part of the machine is used for cleaning work items.

[Paul Coleman]

Dai

Say your washing machine was £300, thats £100 a year and say 25 % was business use that equals £25.00 against your tax take off 22% for tax and 8% for ni that is 30% of £25

so that is £7.50 off your tax bill , Is it really worth annoying the tax man,

The electric would probably come within use of home as office

Annoying them?  They don't take it personally Dave 
I do take the view that I am scrupulously honest in declaring all my income so I am going to make sure that I claim everything I'm entitled to as well.  It is reasonable to claim such things against income tax and they would not have a problem with this in an investigation situation.
I think a good rule of thumb to go by is that if you would not be able to give a reasonable explanation for something in an investigation, then don't offset it against tax.  Otherwise it is perfectly OK and legitimate to do so.  When I got a WFP system, I also bought some hand tools with which to maintain it.  They go against my tax bill too.  I see no problem with this and the taxman wouldn't either.

[Trevor Knight]

Guy's this is how, before I moved to an office, I claimed for my office at home, did this for 9 years without any problems and with 2 Tax inspections.

You can claim for ALL expenses providing they are proportionate to your dwelling.

i.e  If your house has 7 rooms and your rent is £700 per month you can claim 1/7th as you use this room as your office = £100

The same division is used for electric, heating, rates, council tax.

You can also itemise your telephone bill (or install one specifically for business) for all calls relating to business, this includes mobile phones etc....

If you use the internet you can claim a % of the rental.

This is completely legal and won't "annoy" the Tax man as previously posted. Remember guys and gals, you have to work from somewhere so the Tax man understands this, as long as you don't take the p**s then he won't be too bothered.

[mogy]

Hi all, I thought if  you claimed a % of your house for business use  then that  % is going to be claimed by your council at  business rates  ? and if you  sell the property there is a cost there to,
 Mogy

[Moderator David@stives]

Sorry I should not of said annoy wrong word, i was just passing on advice i recieved from an accounting forum , I will try to dig the post out , it was a few years ago.

Basicaly if you start complicating things you WILL get an investigation, If this doesnt bother you then fine, no problems

[matt]

my accountant claims 200 quid for use of my home, lighting, heating etc etc

i claim 50 % of my mobile contract, thus 17.50 a month

[Moderator David@stives]

Here we go It took some finding but this was the advice i recieved from an accountancy forum

http://groups.google.com/group/uk.business.accountancy/browse_thread/thread/65ce7093c9e2d6a0/61327853da5a6469?lnk=gst&q=window+cleaner&rnum=1#61327853da5a6469

Have a read its a good read maybe we could ask for more clarification on all matters window cleaning

Dave

[Paul Coleman]

Here we go It took some finding but this was the advice i recieved from an accountancy forum

http://groups.google.com/group/uk.business.accountancy/browse_thread/thread/65ce7093c9e2d6a0/61327853da5a6469?lnk=gst&q=window+cleaner&rnum=1#61327853da5a6469

Have a read its a good read maybe we could ask for more clarification on all matters window cleaning

Dave

That was an interesting thread on that link Dave.  There were no real surprises for me regarding clothing allowances.  I was already aware that clothing had to be reasonably work specific/protective in order to qualify.  I use blue, one piece overalls (called Eurosuits) and hard toe capped, slip resistant shoes so it would be unreasonable to regard these as clothing for personal use.  I still feel that I should be permitted to offset a portion of underwear charges against tax because I don't go to work without socks/underpants on but it's not allowed to offset those items so I don't.  The big surprise for me was the bit on there about not being able to regard a proportion of the washing machine as a capital item.  That does seem unreasonable because I do use it partly for washing work items.  I realise that, as you've already stated, the saving would be small but it does seem to me to be a reasonable business expense.  My accountant probably notes my declaration and voids the parts that are wrong anyway.  He keeps himself up to date on this stuff so wouldn't allow anything through where I had made an error anyway.
I think the problem is that the IR would be OK with allowing such items but it would be difficult to police in order to stop people taking the pee.  Therefore they just disallow such claims completely.

[DASERVICES]

  Be very carefull if you start claiming expenses against your mortgage
  because when you go to sell your house the tax man then see's your
  house as an asset. You the have to pay tax against the profit when you sell
  your house.

  No problems if you rent.

  Doug

[Trevor Knight]

  Be very carefull if you start claiming expenses against your mortgage
  because when you go to sell your house the tax man then see's your
  house as an asset. You the have to pay tax against the profit when you sell
  your house.

  No problems if you rent.

  Doug

Very true, you then are liable for corporation tax