Excessive Claim?
T.C.
Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙♂️
I have a new client with a small business with a turnover of just £20K and a very small profit. Her previous "book-keeper", who has now vanished, put in a claim for home expenses of: water 17%, council tax 17% and Elec/Gas 17%. For a small business this means that last year she claimed over £500 in use of home expenses. Although she does work from home making up gift items, I wouldn't normally put in this much. Any views?
0
Comments
-
£500 doesn't seem exessive on the face of it.
I always use the apportionment calculation:
number of rooms x days a week x weeks a year x total costs.
so if someone only has a 1 or 2 bed house/ flat with 1 reception room, that can bump the costs up considerably vs someone with a 3-bed-2-recep house.
The amount doesn't have to be proportional to turnover - it needs to accurately reflect the amount the house is used. A lot of people work 6-7 days a week for long hours and so this would push the UOH calculation up.
If someone is only using their house for a few hours a week to do their admin, then they may as well claim the statutory £3 a week as that may well be more generous!0 -
Thanks for your opinion. I will check it out.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 324 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 94 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership