The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> B&B Expenses
Post Info TOPIC: B&B Expenses
Wella


Expert

Status: Offline
Posts: 2256
Date:
B&B Expenses
Permalink  

Has any one done year end accounts for a bed and breakfast establishment?

This particular B&B has three dedicated bedrooms, a lounge for guests, and a small office, which is pretty straight forward, with regard to expenses, repairs & renewals etc. which are directly associated with these rooms.

With regard to shared expenses, like the kitchen that is used about 40% for cooking the breakfasts and the rest of the time for the owners for their own meals (Food bought for the B&B is seperate). During the year this was refurbished, should the expenses be split 40:60?. Likewise, things such as phone, internet, council tax, insurance etc.

The B&B  portion of the building (including a small office) is approximately 50% of the floor space of the building.

Bill

__________________

 

 
Quentin Pain


Senior Member

Status: Offline
Posts: 202
Date:
Permalink  

The real problem with proportioning costs of the asset itself is capital gains tax. I would talk with a tax expert on this one (but that is probably why you are here, so apologies I am not one).

__________________

Quentin Pain

Quentin Pain's Marketing Blog
Free Accounting and Bookkeeping Guides
Accounting Software From Accountz
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Hi Bill,
This is a bit of a teaser. Does the client need normal domestic kitchen or is it more industrial? Not sure if it makes a difference under the wholly and exclusive rules to be honest and I can't find much information on it.
I did find the link below, which may be of interest but doesn't answer the question!


http://www.accountingweb.co.uk/item/157799

Rob

__________________
Rob
www.accounts-solutions.com
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Hi Quentin,

I don't think this is likely to be a cgt issue, all the more so as it is not exclusively used for the business, but it will affect capital allowances. As there is a personal use element it cannot be pooled and if the kitchen was ever ripped out and sold a balancing charge/allowance would need to be calculated.

Rob

__________________
Rob
www.accounts-solutions.com
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink  

Thanks for the input guys

From what I can glean from the HMRC website, is that running a B&B is a trade and therefore, normal (if there is such a word when it comes to HMRC) rules will apply regarding mixed use of expenses, and would not be dissimilar to using a room at home as an office.

Rob - the kitchen is a normal domestic kitchen. The scenario does get a bit complex, as the property is a grade II listed and part of it's appeal is the character of the building, the kitchen had a replacement slate floor and granite work tops installed during the year, which replace similar existing flooring and worktops. As you can imagine not a cheap refurb, so trying to work out the best way to apportion any add back when the SA return is computed.

Bill

__________________

 

 
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> B&B Expenses
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About