Accountancy question re: home salon rates such as gas/electric, etc.

[Pro-Beauty]

As a rough idea how do I work out the percentage of electric, gas, water telephone, etc rates for my home salon?

As I've only been trading for 7 months I havn't done my end of year figures.


But I need to know what my incoming and outgoings are as I'm putting in a claim for Carers allowance for my child & they need figures of how much I earn a month.


I have the usuall speniture to hand but am struggling with what I should allow for the above mentioned rates??




I think I'm running at a loss if I include the rates, which will work in my favour anyway for getting Carers allowance!


Thank you

 

[Pro-Beauty]

Anyone???

 

[hannajadem]

For your phone, do you have a seperate business line? If so you can claim for all of this bill. If you use your phone for both personal and business calls, I believe you claim half.

As for rates, do you mean council tax or water?

For gas and electric (assuming the room you use for working uses both gas and electric) it depends on the number of rooms in your house. For example if you have 3 bedrooms and a lounge, kitchen and bathroom, you have to exclude the kitchen and bathroom so total four rooms. If you use one room for work you can claim a quarter (I.e. one out of four) of your gas and electric.

Hope this helps x

 

[Pro-Beauty]

For your phone, do you have a seperate business line? If so you can claim for all of this bill. If you use your phone for both personal and business calls, I believe you claim half.

As for rates, do you mean council tax or water?

For gas and electric (assuming the room you use for working uses both gas and electric) it depends on the number of rooms in your house. For example if you have 3 bedrooms and a lounge, kitchen and bathroom, you have to exclude the kitchen and bathroom so total four rooms. If you use one room for work you can claim a quarter (I.e. one out of four) of your gas and electric.

Hope this helps x

Thanks my phone is both so that would be half.

In the house fir gas & elec we have living room, dinning room, salon, 3 bedrooms upstairs. So if my bill is £150 a month that would be £25 for the salon.

It is the same calculation for water rates?

I was told I don't need to be pay business rates as I have said the salon room is also used fur domestic purposes aswell (ie storage when not working)

Didn't know anything about council tax?

I use the Internet for work purposes aswell so what round that be?

Thank you

 

[Beansy]

Thanks my phone is both so that would be half.

In the house fir gas & elec we have living room, dinning room, salon, 3 bedrooms upstairs. So if my bill is £150 a month that would be £25 for the salon.

It is the same calculation for water rates?

I was told I don't need to be pay business rates as I have said the salon room is also used fur domestic purposes aswell (ie storage when not working)

Didn't know anything about council tax?

I use the Internet for work purposes aswell so what round that be?

Thank you

You calculate phone, broadband etc on the basis of how much you use them. If you use your broadband for 50% each work / home this is what you'd claim. If you used it for the majority e.g 75% for work then you would claim this amount of the bill.
HTH

 

[McBeth]

I have a home salon and the way the gas, electricity etc is worked out, (I'm in Australia) is based on the percentage of the total floor space in my house that my room (salon) takes up.
For example based on my floor plan, it is 6% of the total house, so can claim 6% of all my gas, electricity etc.

 

[nicole333]

Have you watched the Webinars offered by HMRC? If not, I strongly advise you to do this. My mate Jonathan :wink2: from the expenses one, says you can put down an acceptable figure of £4 per week for using a room at home rather than give yourself the task of all the workings out. By the way, phone and Broadband are completely separate from this. This is just rates if you like.

Get yourself registered for the Webinars, you can ask questions on them and they are so helpful. You will find them on the HMRC website, just type Webinar in the search box and they will all come up. They are also repeated frequently, so if you miss one, you will be able to join in on another.

 

[nicolao4]

Also don't forget the cost of laundering and drying your towels, if you do a search online it tells you what the average cost if each wash and drying cycle which includes water and electric use. Also factor in how much washing powder and fabric softener you use too. X x

 

[Pro-Beauty]

Great advise everyone!

I don't have a webcam on my PC 😔 suppose I could use my iPhone

£4 a month doesn't seem much?

 

[Beansy]

It's £4 per week!

 

[Pro-Beauty]

This is what I have worked out so far for my expenses for my home beauty salon, costs are per month:

Experience in this?...Please feel free to contribute or advise if you think its should be higher/lower. This is new to me:down:

Elec & Gas £25 (based on 1/6 of house size excluding bathrooms, kitchens)
Water & sewerage £9 (1/6)
Laundry of towells/uniform £20
Accountancy £29? (I do my own books)
Insurance £4.16
Cleaning £4
Pac testing £16.66
Phone & Broadband (based on 1/4 of useage)
Mobile phone £18.00 (based on 1/2 useage)
Training £8.75
Staitionary, printing, ink £8.33 (print my own leaflets)

 

[Zooks]

Just doing my end of year, gettig it all ready and realised that the one thing I havent got down is my laundry.

I do it all at home, usually 2 loads a week and then tumble dry too.

I cant find any up to date figures online, the avereage costs date back to 2007..

Does anyone have any recent figures of how much one wash cycle averages?

Including water, electric and powder and then again for tumble drying?!

I will keep searching in the mean time!

 

[Beansy]

This is what I have worked out so far for my expenses for my home beauty salon, costs are per month:

Experience in this?...Please feel free to contribute or advise if you think its should be higher/lower. This is new to me:down:

Elec & Gas £25 (based on 1/6 of house size excluding bathrooms, kitchens)
Water & sewerage £9 (1/6)
Laundry of towells/uniform £20
Accountancy £29? (I do my own books)
Insurance £4.16
Cleaning £4
Pac testing £16.66
Phone & Broadband (based on 1/4 of useage)
Mobile phone £18.00 (based on 1/2 useage)
Training £8.75
Staitionary, printing, ink £8.33 (print my own leaflets)

Um, confused!
You've listed £29 for accountancy but then said you do this yourself...?
Your PAT testing seems very expensive.. £200? To give you an idea, I've paid 80p an item

Re. Washing machine cycle costs, this might be useful-
http://michaelbluejay.com/electricity/laundry.html

 

[Pro-Beauty]

Um, confused!
You've listed £29 for accountancy but then said you do this yourself...?
Your PAT testing seems very expensive.. £200? To give you an idea, I've paid 80p an item

Re. Washing machine cycle costs, this might be useful-
http://michaelbluejay.com/electricity/laundry.html

Accountancy fees aprox £100 for end of year if needed? Pac testing I had some re-wiring done in the salon...

 

[cherrybaby]

Um, confused!
You've listed £29 for accountancy but then said you do this yourself...?
Your PAT testing seems very expensive.. £200? To give you an idea, I've paid 80p an item

Re. Washing machine cycle costs, this might be useful-
http://michaelbluejay.com/electricity/laundry.html

I need to get some PAT testing done. Who do you use that only charges 80p per item please? Feel free to PM if more appropriate.

Thanks in advance.

 

[larenka]

Does PAT testing have to be done for anything used at home or mobile for business including spray machine, lamps, fans etc?
God they really did mean it when they said setting upa business is an expensive job...:irked:

 

[Kazzikammy]

Does PAT testing have to be done for anything used at home or mobile for business including spray machine, lamps, fans etc?
God they really did mean it when they said setting upa business is an expensive job...:irked:

Anything electrical you use in the course of your business needs to be PAT tested. xx