Switch account to my business name?

[hokkers999]

Originally Posted by Ernie_C

Two more reasons for not doing business with you if that's how you respond to my reasonable comments.

I merely pointed out that you were running a business on a residential service which is not allowed.

I made no threat to 'call anyone'.

Shall I call Watchdog now?

Scroll back up and read it. At least be consistent.

[andygrif]

Originally Posted by hokkers999

I have no problems with switching it to a business account, just wanted to see if they would do it.

In terms of running a business from home, then I can't be the only person doing it.

I'm not exactly putting a large load on the network - email, web applications for mortgages and insurances.

My general web browsing is probably 50-100x more traffic than that - especially with a daughter who is always viewing stuff on youtube

I think you've hit your own answer with what you've just said.... the connection has domestic use as well as your home business use.

The revenue (at least last year when I attended one of their fascinating seminars) want to see credible tax returns, so I really cannot imaging that right now they will question a legitimate claim for expense. In the same way as your phone, electric, etc, you need to work out a 'reasonable' percentage of use consumed by your business activity.

So. for example, let's say that 40% of all your internet activity is business related and your charge is £20 per month, then you can legitimately claim an £8 per month expense, and reduce your profit by £8 pm accordingly.

You'll be able to do the same on phone calls, but things like electric and gas all you'll be able to deduct is the difference between the cost of heating and lighting between running your home business and not running it.

According the Revenue, you cannot deduct any costs associated with the building (ie part of your rent or mortgage) but I have heard from some accountants that there are ways to do this.

You also, by running a business from home, leave yourself open to paying Business Rates to your local council on a portion of your house. Your Council Tax will be reduced, but BR are always more expensive than Council Tax.

Back to your question... Putting in a claim for the whole of your internet connetcion when you work at home is VERY likely to attract the wrong sort of attention - and you really don't want a Revenue investigation, which WILL cost you a lot of money, waste a lot of your time and cause you sleepless nights.

The bottom line is that you need to be truthful and the truth needs to be believable.

[hokkers999]

Originally Posted by andygrif

I think you've hit your own answer with what you've just said.... the connection has domestic use as well as your home business use.

The revenue (at least last year when I attended one of their fascinating seminars) want to see credible tax returns, so I really cannot imaging that right now they will question a legitimate claim for expense. In the same way as your phone, electric, etc, you need to work out a 'reasonable' percentage of use consumed by your business activity.

So. for example, let's say that 40% of all your internet activity is business related and your charge is £20 per month, then you can legitimately claim an £8 per month expense, and reduce your profit by £8 pm accordingly.

You'll be able to do the same on phone calls, but things like electric and gas all you'll be able to deduct is the difference between the cost of heating and lighting between running your home business and not running it.

According the Revenue, you cannot deduct any costs associated with the building (ie part of your rent or mortgage) but I have heard from some accountants that there are ways to do this.

You also, by running a business from home, leave yourself open to paying Business Rates to your local council on a portion of your house. Your Council Tax will be reduced, but BR are always more expensive than Council Tax.

Back to your question... Putting in a claim for the whole of your internet connetcion when you work at home is VERY likely to attract the wrong sort of attention - and you really don't want a Revenue investigation, which WILL cost you a lot of money, waste a lot of your time and cause you sleepless nights.

The bottom line is that you need to be truthful and the truth needs to be believable.

My accountant is fully qualified so I take her advice! I don't actually claim *anything* for home expenses ie any fraction of gas electricity etc. I have deliberately not asked for any change in council tax etc as there are other *potential* knock on effects when you come to sell like capital gains etc.

I agree that staying off the revenue radar is always preferable - again that's what I pay my accountant for - but I also have tax investigation insurance that pays up to 1/2 mill in professional fees.

Currently claiming deductions for mortgage interest IS now allowed again!

I guess the safe answer is simply status quo. Though if VM would do real static ip's then I would if they allowed it keep my residential and purchase a business bb as well.

[andygrif]

Originally Posted by hokkers999

My accountant is fully qualified so I take her advice!

I don't mean to sound rude, but if you're so so happy with the advice your accountant is giving you then why are you asking for people's advice on here, then pooh-pooh'ing what people with their own experiences tell you?

Originally Posted by hokkers999

I have deliberately not asked for any change in council tax etc as there are other *potential* knock on effects when you come to sell like capital gains etc.

So you're deliberately avoiding paying your Business Rates? I'm sure that will go down well with the local council.

Originally Posted by hokkers999

I agree that staying off the revenue radar is always preferable - again that's what I pay my accountant for - but I also have tax investigation insurance that pays up to 1/2 mill in professional fees.

Telling the thruth is what's always preferable. Claim for the things you're entitled to and stop trying to defraud the Revenue out of a few quid a month for your internet. It's not rocket science.

Originally Posted by hokkers999

I guess the safe answer is simply status quo. Though if VM would do real static ip's then I would if they allowed it keep my residential and purchase a business bb as well.

Static IP addresses have nothing to do with whether the service is a business one or not. As long as you're using the internet service for domestic as well as business purposes then you are not allowed to claim 100% of the expense as a business one - it's as simple as that.

And it's a little disturbing to me that someone who claims to be working in financial services cannot grasp a financial transaction so simple.