Office Water bill

[sapsaint]

Im an IT contractor - working from home.
I have just setup as a limited company.
My home is my office.

My United Utilities Water bill has come through the post.
Can i put this down as a business expense and pay for it through by business account?

Thanks in advance.
SAP

[convict]

Im an IT contractor - working from home.
I have just setup as a limited company.
My home is my office.

My United Utilities Water bill has come through the post.
Can i put this down as a business expense and pay for it through by business account?

Thanks in advance.
SAP

Seriously. What do you think?



Is the water bill in your company's name?
Does the rest of the property not use water/Is there a separate water bill for your non-business part of the house?

ETA maybe get a water meter, count how many bog flushes while working etc. work out the portion and put it in and see what your accountant says

[sapsaint]

Im sorry if i sound stupid - im fairly new to all this.
yes you are right most of the time its used for personal use - but having said this - given that my home is my office, should the business be making a contribution towards this?

Thanks

[DaveB]

Before NLUK spots this one and goes puce with rage.

No. You can't.

HMRC have very clear guidelines on what you can and can't claim for use of your home.

EIM32815 - Other expenses: home: household expenses: expenses that are deductible

If you don't understand that, get an accountant.

[malvolio]

Im an IT contractor - working from home.
I have just setup as a limited company.
My home is my office.

My United Utilities Water bill has come through the post.
Can i put this down as a business expense and pay for it through by business account?

Thanks in advance.
SAP

So you only use water when you're working? Which bit of "wholly and exclusively for business purposes" have you not understood? Come to that which bit of "You and YourCo are different legal persons" have you also not understood? You 'd better get reading, before you have to ask about being done for tax evasion.

And to answer your question, you can claim up to £4 a week for use of a home office as a billable expense with no BIK arising. Any more than that and complications start to creep in.

[sapsaint]

Before you ask - i have emailed my accountant asking the same question :-(

No separate meter.

Thanks

[DaveB]

So you only use water when you're working? Which bit of "wholly and exclusively for business purposes" have you not understood? Come to that which bit of "You and YourCo are different legal persons" have you also not understood? You 'd better get reading, before you have to ask about being done for tax evasion.

And to answer your question, you can claim up to £4 a week for use of a home office as a billable expense with no BIK arising. Any more than that and complications start to creep in.

£18 Month for those paid monthly.

[sapsaint]

£18 Month for those paid monthly.

Dave thanks for the help - i think im clear now.
Much appreciated.

[northernladuk]

Im sorry if i sound stupid - im fairly new to all this.
yes you are right most of the time its used for personal use - but having said this - given that my home is my office, should the business be making a contribution towards this?

Thanks

Being new is not an excuse to not apply some basic common sense and do a bit of research.... Read the guides for expenses.

If you work 100% of the time from home you can claim a portion of bills. If you don't you can pay yourself about £260 a year for home office use.

Get an accountant and he will explain it all to you.

Also have a look at the search option as explained here http://forums.contractoruk.com/welco...uk-forums.html

Everything a newbie can ask will have been done to death so search first.

[eek]

Everything a newbie can ask will have been done to death so search first.

Alternatively for a personal response just click this link and our operative at the other end of the message will be only too delighted (probably not the right word) to answer your query.

Although I think in your case this answers the question

As soon as you get any money in your company bank account spend it all on expenses immediately.

Making sure you expense everything you can think of.

So if your kids want presents - expense it.

Its probably worth checking the thread title before acting on that advice tho.