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#1 Wednesday 22nd August 2012 13:40:08

Lady-Hynarc
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Registered: Monday 9th April 2012
Posts: 650

Is this complicated?

I buy a Netbook for use by the business - so it's classed as a business expense.  Some time later the Netbook is broken in an accident at home.  I claim on my personal contents insurance for accidental damage to the Netbook.  I then buy a replacement PC (laptop this time), again for use by the business.  Is the money that I get from the insurance company classed as business income because it is for replacement of a business asset or as personal income because it is a personal insurance policy?  If the latter, should the business pay for part of my contents insurance?  Thank you HMRC for making things so complicated.

On another note, if I buy 'lunch' because I am out for the whole day instructing, is that classed as a business expense?  Part of me says that it was expense which would not have been accrued had I not been busy all day - I would have gone home for lunch - and is therefore a legitimate business expense; part of me says that I should have made a packed lunch. cool  Personally I won't claim it as a business expense as I consider the latter to be a slightly stronger argument - what would you do?

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Wednesday 22nd August 2012 13:40:08

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Re: Is this complicated?



#2 Wednesday 22nd August 2012 14:22:48

Roadmaster
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Registered: Thursday 4th March 2004
Posts: 5,679

Re: Is this complicated?

Do you claim for wearing your shoes out walking to the car?  Or part of the cost of your haircut because it grows during working hours?

You can claim for anything and everything.  You'll only find out if it was valid if you are investigated and then evry last item is put under the microscope.

As for the netbook, why complicate things.  If you got the money from insurance to replace it, just replace it and don't claim anything.  Your accounts then just show you made one purchase.

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#3 Wednesday 22nd August 2012 17:31:46

DrivingInstructors.co.uk
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From: Durham
Registered: Wednesday 1st August 2012
Posts: 77
Website

Re: Is this complicated?

I've also worked ref the lunch question that no matter where I was I would have to purchase lunch.  Even if I was at home there would still be a cost.

What I do is deduct 1.00 (what I believe having my lunch at home) from the receipt cost of buying a lunch while out.  So If I buy lunch/drink for 2.99 I would claim 1.99

As sandwiches etc are recommended to be consumed withing 4 hours of leaving a fridge, its not possible to store lunch that amount of time. (if you start at 8 and stop for lunch at 1)


UK ADI - Driving Instructor Directory http://www.drivinginstructors.co.uk Are you listed?  if not why not as its free

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#4 Wednesday 22nd August 2012 22:04:20

martin Williams
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Registered: Friday 26th June 2009
Posts: 1,144

Re: Is this complicated?

This ones pretty simple to answer i think.

On the advice of my accoutant I claim around 600 for doing part of my work from home. This payment includes a % payment towards all costs, Electric, gas, office rental and things such as household insurance.

What do you put down on your tax return for working from home?

As for lunch i claim if i'm away for the day to far to go home for lunch which is not often maybe 4 or 5 times a year.

Last edited by martin Williams (Wednesday 22nd August 2012 22:09:05)

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#5 Wednesday 22nd August 2012 22:09:02

Roadmaster
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Registered: Thursday 4th March 2004
Posts: 5,679

Re: Is this complicated?

So do you declare business use of the home for council tax purposes?

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#6 Wednesday 22nd August 2012 22:13:33

martin Williams
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Registered: Friday 26th June 2009
Posts: 1,144

Re: Is this complicated?

Roadmaster wrote:

So do you declare business use of the home for council tax purposes?

I'm no expert my accountant puts 600 down as office rental and running costs. He infomed me that this is the figure the tax man is happy with and wont ask or dispute it if he pays you a visit.

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#7 Wednesday 22nd August 2012 22:21:19

Roadmaster
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Registered: Thursday 4th March 2004
Posts: 5,679

Re: Is this complicated?

I'm sure the taxman is happy, but it's the voa which is responsible for coucil tax, and they have their own rules for using part of your home for business.

http://www.voa.gov.uk/corporate/Publica … mHome.html

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#8 Wednesday 22nd August 2012 23:03:28

martin Williams
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Registered: Friday 26th June 2009
Posts: 1,144

Re: Is this complicated?

I think most of us are the same as example 5 which says,

Our assessment: Rateability will not arise unless equipment of a non-domestic sort is installed or the property is physically adapted for the business use. This is because the character of the room remains as domestic living accommodation, and the purposes of living accommodation may include recreational and leisure use and work. Also the taxpayer uses furniture and equipment of the kinds that are commonly found in domestic property.

But i'm no expert hence why i pay an accountant rather than do my own.

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