I am just completing the books for a friends part time cake making business. She has bought two hand mixers over the year, which are less than £10. Can I class these as Renewals?
Also She makes, on average 2 cakes a week which takes her about 4hrs each cake, so total of 8 hrs. Can I claim back the £4 a week home use allowance (its for Year 12/13), which would be £208, or should I work out how many cakes she has made and claim back a proportionate amount of weeks? She's done about 67 cakes, plus lunchboxes for parties, plus catering for another party - should I work it out as about 70/2, so 35 x £4, so just claim back the £140?
I think it would be wise. Given that £208 - £140 would typically save someone £14 in tax (will she pay any?) it's probably a good idea not to claim every last morsel of the home use even if you had every right to do so.
As you indicate she's hardly using the kitchen constantly, this might not be a bad idea. Others may disagree.
