Question:
What can you claim as expenses (for tax purposes) I mean can you claim the full amount of your gas / electric bills etc? tea / coffee / sandwiches / biscuits / furniture (desks cabinets etc)
I realise that if i take a client out for lunch I should collect receipts as this is classed as expenses but as I'm new to this, I'm not sure exactly what I can claim.
Thanks in advance
Answers:
If you set aside one room entirely for business use, you can claim a proportion of the heat and light relating to that room. So, if you have 3 bedrooms and 2 reception rooms and use one bedroom for business, you claim one fifth of the heat and light (you exclude bathroom and kitchen as eating and going to the loo are private functions). If you only use the room for part of the time, say a half, then you claim that proportion of the heat and light.
You don't include expenses like council tax, water and rent as these would be paid whether you worked from home or not, but its reasonable to expect that extra fuel costs would be incurred for working from home.
You claim capital allowances on things like deaks, cabinets, PC's.
You cannot claim for tea, coffee, etc as eating is a private function. Likewise entertaining and eating out are not allowable.
Have a read of below - it basically outlines that anything business related can be deductable.
You can only claim for expenses that are in addition to your normal household expenses and which are necessary for you to fulfil your business needs.
Business lunches can only be partly offset, after all you would still eat even if it were not for business purposes.
Your home would still be heated even if you didn't work from home although there may be some additional cost involved if you needed heating to be on for longer than your residential need.
Get an accountant, and let him advise you.
Depends on what your business is. I dont think you can claim everything down to your toilet paper, but who knows? It depends on what it is you are buying and what type of operation you are running. you could probably claim your office furniture as long as you don't go crazy with it. You probably could only claim some food, but not your entire kitchen full. Maybe you should take a small business course. it would tell you all of that.
You can't claim entertainment.20 years ago you could for foreign business clients, but not now, lunch is NOT deductable, as it is not "wholly and necessarily" a business expense....You can claim part use of home as office, but not too much or else you'll get clobbered for business rates...just keep a receipt for everything and let your accountant sort it out!
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