Hey guys, im working on someones accounts whos an acupuncturist, she has a office and a clinic in her home, is it reasonable to charge £15 a week for each room for working from home using home as office? the rooms are soley for business use.
the pension costs she has paid is her drawings therefore not an n expense to her business
The home phone is registered on her name however her and her husband us eit for business ( husband has seperate business) is it right that if the home phone is residential then only the cost of the calls can be claimed on no line rental?
A computer for under £200, im going to just put it through as an expense, no point claimimng cpaital allowances as it is a small amount and under AIA you can put any thorugh under £50, 000( that does apply to sole traders too right?
sorry this isn't a full answer but I'm just whizzing past at the mo. busy, busy, busy today.
In answer to the AIA part of the above the 50k applies to any organisation no matter what it's type or size so sole traders are fine.
good luck with the rest of the answers (especially the first one about the £15 per week that I think may cause some debate... That's you're intro Phillip!).
Talk later,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I agree with the AIA answer from Shaun, however for £200, I would expense it on the P&L. There is no harm in that. As for the telephone, seeing as it is used by 2 businesses, you should really only claim for the usage by each business, if possible, or if that can't be done, a reasonable %, but you'd have to be able to justify it.
Now we come on to the use of home bit.....much debate here! I think it does depend on the size of her clinic compared to the rest of the house. Most of the time, we talk about a self employed person who works from home, maybe in a spare room or dining room table, that kind of thing, whereby you can claim an amount (ranging from £2 to £10 per week depending on what you feel), but if its a purpose built room, that could be a different matter!
Anyone else got some views or real life examples so that we can all learn....
The phone expenses are split, her husband has his own business and his accountant has set a percentage for him, also the house is massive and her husband has 2 rooms aswell which he uses for business too. His accountant always £15 per room for him but i wanted to double check that with you guys. 1 room is small and used for office and other room is a good size which has been set up as the clinic, so i think £30 for both is ok becoz the clinic has been designed and set up as a proper clininc with build in hand washing facilities etc and a seperate toilet for the clients to use so.
The phone, would it be a split for the business on the calls made or would that include the line rental? i though line rental could only be claimed if he phone was soley used for business.
I look forward to some more responses. I dont just want to use the same method as her husbands accountant, i want to know and learn for myself
I have to say, ALL her paperwork is in absolute order and the logging of every income and expense transaction is acurate with codes for each item. Just thought id share that with you
