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Ian101

  • Posts: 7889
Use of home tax allowance
« on: January 10, 2012, 05:45:21 pm »
As I'm inbetween accountants at the moment I can't ask them but what amount do you put through books for use of a room for office and part og garage for IBC and for washing of overalls and cloths ?

Also owt else u can allow for ??

Sean Dyer

  • Posts: 2947
Re: Use of home tax allowance
« Reply #1 on: January 10, 2012, 06:47:47 pm »
i think as an office its about 2-3 a week

I tend to dump a percentage of all utilities , phone etc and a bit as office

I tend to think that the more i put the better obviously and its upto them to turn around and say sorry no

I suppose these things  are what you 'd pay an accountant for

Klean07

  • Posts: 3244
Re: Use of home tax allowance
« Reply #2 on: January 10, 2012, 06:56:06 pm »
Everytime you turn the light on to do something with your business etc claim for that. Telephone bill. I pay a young lad to clean my van every week on my drive. He charges me £25 a week. All this goes through the business. Just keep a record of it.
kkleanwindowcleaning.co.uk

andyM

  • Posts: 6100
Re: Use of home tax allowance
« Reply #3 on: January 10, 2012, 07:11:52 pm »
HMRC told me any business expense has to be "allowable". They will give you advice if needed on allowable expenses.
All allowable expenses must have a receipt. Wholey or proportionately.
Also if a proportional expense is claimed for it must be "reasonable".
I believe if you are renting a property and using a room as an office for example you can claim for a percentage of your rent. 
If you are unsure get advice from HMRC or an accountant.
I wouldn't advise bunging everything in and seeing what you get knocked back on.
That can be a dangerous game to play.
One of the Plebs

Sean Dyer

  • Posts: 2947
Re: Use of home tax allowance
« Reply #4 on: January 10, 2012, 07:17:06 pm »
HMRC told me any business expense has to be "allowable". They will give you advice if needed on allowable expenses.
All allowable expenses must have a receipt. Wholey or proportionately.
Also if a proportional expense is claimed for it must be "reasonable".
I believe if you are renting a property and using a room as an office for example you can claim for a percentage of your rent. 
If you are unsure get advice from HMRC or an accountant.
I wouldn't advise bunging everything in and seeing what you get knocked back on.
That can be a dangerous game to play.

If its only a few hundred quid a year i would

andyM

  • Posts: 6100
Re: Use of home tax allowance
« Reply #5 on: January 10, 2012, 07:22:58 pm »
I get where your coming from Sean but I am always cautious about these things.
And I only claim for something I can back up with receipts incase they ever wanted to look at my accounts.
Otherwise you become liable to fines and added interest.
One of the Plebs

Re: Use of home tax allowance
« Reply #6 on: January 10, 2012, 07:32:08 pm »
There are 2 methods the tax man will accept, the first is a pecentage of your Electric/Gas/Water and council tax bill, to go down this route you need to use a "room" solely for business, so if you use a spare bedroom, there must NOT be any bedroom furniture in it.

To work out the percentage you count how many rooms you have in your house, you cannot count the kitchen, hall, gargage, toilet or bathroom.

you then divide the bills into how many rooms you have and divide down to the 1 you are using.

The other method is far simpler, you can claim a weekly usage rate, the only problem with this is each tax office has its own figure on what it classes as a reasonable weekly rate, its best to phone them and ask, I though claim £5 per week = £260 per year.

also don't get fooled into claiming anything you think is right, because the taxman will accept everything you put down on your tax return, the problems start is when they look at YOUR return in detail and you then have to convince them that, the expenses you are claiming for are right and proper.

The majority of fines that are appied to tax payers are the results of wrong information being supplier or claimed for.

carl stanton

  • Posts: 821
Re: Use of home tax allowance
« Reply #7 on: January 10, 2012, 08:14:43 pm »
the tax person will not decide what you can and cant put through when you submit your form you have bound yourself by saying i believe all i put in is honest and all that, but as said until, if ever you get pulled up

you could always ask to take you books in and sit with them and get them to work for the tax you will pay

Gav Camm lammy 283

  • Posts: 7520
Re: Use of home tax allowance
« Reply #8 on: January 10, 2012, 11:31:58 pm »
ian my father in laws an accountant
if u want is number giza shout ;)
LET YOUR PANES BE MY PLEASURE

"If CALSBERG did WINDOW CLEANING
 it would be C.C.C  Probably the best WINDOW CLEANERS IN THE WORLD ..........."

CleartechLee

  • Posts: 103
Re: Use of home tax allowance
« Reply #9 on: January 11, 2012, 12:09:06 am »
There are 2 methods the tax man will accept, the first is a pecentage of your Electric/Gas/Water and council tax bill, to go down this route you need to use a "room" solely for business, so if you use a spare bedroom, there must NOT be any bedroom furniture in it.

To work out the percentage you count how many rooms you have in your house, you cannot count the kitchen, hall, gargage, toilet or bathroom.

you then divide the bills into how many rooms you have and divide down to the 1 you are using.

The other method is far simpler, you can claim a weekly usage rate, the only problem with this is each tax office has its own figure on what it classes as a reasonable weekly rate, its best to phone them and ask, I though claim £5 per week = £260 per year.

also don't get fooled into claiming anything you think is right, because the taxman will accept everything you put down on your tax return, the problems start is when they look at YOUR return in detail and you then have to convince them that, the expenses you are claiming for are right and proper.

The majority of fines that are appied to tax payers are the results of wrong information being supplier or claimed for.

Pretty much exactly what was explained to us on a business course.. think the words he said were they had to be "livable rooms" so like Pure HYDRO cleaners no kitchen bathroom etc

Re: Use of home tax allowance
« Reply #10 on: January 11, 2012, 08:45:39 am »
Forgot to mention, you cannot claim any portion of the rent/mortgage either, the reason is, you would have had to pay this amount anyway, whether you are self employed or not.

Window Washers

  • Posts: 9036
Re: Use of home tax allowance
« Reply #11 on: January 11, 2012, 09:15:44 am »
Forgot to mention, you cannot claim any portion of the rent/mortgage either, the reason is, you would have had to pay this amount anyway, whether you are self employed or not.
totally off topic sorry, William do you have a copy of the photo when we got that award at the cleaning show a few years back ?

Ian
If your not willing to learn, No one can help you, If you are determined to learn, No one can stop you ;)

carl stanton

  • Posts: 821
Re: Use of home tax allowance
« Reply #12 on: January 11, 2012, 11:12:56 am »
just been to my accountant and he has allotted £600 odd  for office use and he is top notch

Nameless Drudge

  • Posts: 997
Re: Use of home tax allowance
« Reply #13 on: January 11, 2012, 03:47:41 pm »
Just be careful you dont attract business rates for this office.