[combat1]

So quick question to other immersion users.
How do you claim for the electric used as an expense in your accounts.
I know it costs me around £4 a night so keep a record of when used and x it by £4.
Dont know if HMRC would accept this?
Water is not a problem- I have a sub meter, but electric is all through one meter.

[Smudger]

Do you rent or own ( mortgage ) ?

Check with accountant on what’s a reasonable % to claim for

Darran

[combat1]

We rent at the moment, hoping to buy soon.

[Slacky]

Has your neighbour got an outside plug socket?

[Spruce]

I would just keep a written record of the days and times you have had it on calculate the cost accordingly.  Add that amount to your running expenses as a separate item.  If it's queried, then you have the documentation to justify that cost. As long as your overall running costs (expenses) are reasonable when compared to turnover then there shouldn't be a problem.

[combat1]

Thanks Spruce, that’s what I’m doing at the mo, so should be ok. Hope all is good with you.

[Smudger]

Ok if you rent do you have a room set aside for the business ( of course you do - most likely 2 rooms 😉 ) you can claim a % of the rent against the business - if I remember correctly rooms that count are - living room - lounge - bedrooms (not kitchen or bathrooms).  So for example your rent is 1k per month and you have 7 rooms from the above list and you use 2 for running abc window cleaning - your 1k rent is divided by 7  (143 per room) you now claim 2x143 as expenses - 2 rooms out of 7 is approx 30% so you can claim 30% of your  electric, gas, water bill etc..   and your phone is business so that’s 100% as is broadband  but Not sky tv 🤔😁

Darran

[NWH]

It’s up to you what you put on your Tax return there are 3 figures on your Tax return that are important to them,the top figure middle and bottom.
Look at your Tax return if you use an accountant there are figures that will seem obscure,amounts such as electric water and use of house are all knitted together in a lot of cases.
There is nothing stopping you adding up all those 4 quids and submitting them unless you have an inquiry you won’t have to explain until this point,if you have a record of the amount used you won’t have a problem if that’s the difference in your electric bill since using an emmersion heater.

[combat1]

Cheers guys, much appreciated.
Pretty much as I thought. I do my own return, not difficult for my pathetic turnover ( not 70k yet!)
Just wanted to be as near to correct as possible in case of the dreaded inspection.
There are certain fixed allowances, one being for use of room. I’m still claiming. £100 a year. Apparently they wouldn’t allow it if there were signs that the room is also used for something else.

[cleaniac]

You might want to consider going Ltd.

If you go Ltd, and you rent the premissis you can charge back a portion of your rent to your company through the DL account.

Also if you are just under 70k a year,.that's not bad if you are on your own, Lee Pryors guys each turn over between 60k and 70k

 As far as HMRC inspections are concerned, they will argue that black is white if they feel that they are able to intimidate you enough in order to extract money from you, so it doesnt matter what you do they will interpret their rules to suit them anyway. The UK tax system is so complex now, and open to interpretation it's impossible to know what is right, and that's the way HMRC like it it gives them ultimate power.

[Smudger]

You might want to consider going Ltd.

If you go Ltd, and you rent the premissis you can charge back a portion of your rent to your company through the DL account.

Also if you are just under 70k a year,.that's not bad if you are on your own, Lee Pryors guys each turn over between 60k and 70k

 As far as HMRC inspections are concerned, they will argue that black is white if they feel that they are able to intimidate you enough in order to extract money from you, so it doesnt matter what you do they will interpret their rules to suit them anyway. The UK tax system is so complex now, and open to interpretation it's impossible to know what is right, and that's the way HMRC like it it gives them ultimate power.

You can do this as self employed or partnership

Darran

[Neil Worsnop]

https://www.sust-it.net/energy-calculator.php?tariff=38

Select the tariff you're on, enter time and power.
Gives you a figure to work from. 

[AuRavelling79]

With my 3KW heater I work on 50p per hour. (17p approx per KWH)

When I do my year end accounts I work out how many hours per night I would have put the immersion on and as a guideline as I do it for supple hoses and anti-freezing purposes I reckon the following ...

I assume I work 16 days per calandar month and then these are the 3KWH's...

October at 3 hours per night x 16 = 48
November at 4 hours per night x 16 = 64
December/January/February at 5 hours per night x 16 = 240
March at 4 hours per night x 16 = 64
April at 3 hours per night x 16 = 48

(This will also allow for nights I don't need it as I have a day off or nights I stick it on for an hour for anti-frost purposes.)

So that equals 464 hours @50p = £232.00 spent so that goes as a business expense over and above the one sixth of electricity and gas I use for my office (as it is one sixth of the rooms - exc attic room/Kitchen and bathroom- in my house) room.

I also have a hot tap outside which on rare occasions I use or DtM uses to fill a tank with hot tap water for a building wash. This runs off the gas boiler so if I use this I stick it down as an expense of about a tenner but this only happens two or three times a year.

[combat1]

Cheers for that. I think your response will give us a lot of clear guidance. All the best.