Home Salon

[lancashirelass]

I have worked from home now for the last year and have never claimed for utility costs (gas and electric) mainly coz I dont know how to do this any ideas how to work out the costings etc.

Any advice would be appreciated.

Denise

 

[naturalnails]

I think that if you add up your costs for utilities for the year then divide it by the number of rooms in your house then it would be fairly accurate.

If you have a room dedicated to your salon then this would work, but if you say have a room which you use for other things then you would need to pro rata it.

Hope that makes sense.

 

[jes]

Find out the total floor space of your house and then work out what percentage of that space is taken up by you salon room. If you room is only used for business then use this percentage to work out how much of your utility bills your using. If your room is used for other things you'll have to multiply this figure, again, by the percentage of business use.

...However, don't forget that if you allocate a space as 100% for business use, you may be required to pay business rates for that space.

HTH

 

[lancashirelass]

Crikey its confusing

I have a room which has been called my studio. I use this for my clients who come to have there hair extensions done, mainly evenings and weekends. I use it for myself aswell to do my hair in and put my makeup on etc. I also have a sofa bed in there which is used for guests/family when they stay over, so really in all its used for my business and then can be used for a bedroom when guests/family stay over so how would i calculate this and would the rates be payable on this or not.
Forgot to mention that my hubby also plays his guitar in there when clients are not in and we may play games on the flat screen telly as a games room if the other is watching main tv downstairs.

 

[jes]

I think I may have overcomplicated things in my earlier post by being too critical. HMRC are normally OK as long as you as you make sensible and realistic estimations. From what you say I imagine they will probably be happy if you declared that room to be used for 40 to 50% business use.

Now, just as an example... if your room occupies 10% of the whole house and you decide that room is used 50% for business, you can claim 5% of your utility bills as a business expense.

jes

 

[Susie H]

I think I may have overcomplicated things in my earlier post by being too critical. HMRC are normally OK as long as you as you make sensible and realistic estimations. From what you say I imagine they will probably be happy if you declared that room to be used for 40 to 50% business use.

Now, just as an example... if your room occupies 10% of the whole house and you decide that room is used 50% for business, you can claim 5% of your utility bills as a business expense.

jes

You are also entitled to claim for decorating it, having a computer for your accounts, bookings etc and don't forget the all important phone. It's work a trip to your local tax office to talk to a tax advisor to see just what you can claim for, some of it may well surprise you.:hug: