Can you claim back electrical costs if you work from home entirely if your company is Limited?

[Onthebrightside]

Can anyone advise please?

My client works entirely from home and has his own limited company. Can he therefore claim electricity costs (or at least a portion of)? If so, how does he go about that in accounting terms.

Grateful for any assistance/advice.

 

[johndon68]

If you search on Google, there are hundreds of pages that will give you the answer, one such here: https://myaccountancyhub.co.uk/claiming-home-utility-bills/

 

[DWS]

What do you mean by client?

 

[Onthebrightside]

If you search on Google, there are hundreds of pages that will give you the answer, one such here: https://myaccountancyhub.co.uk/claiming-home-utility-bills/

Thank you, it's perfect, simple and precise, it's much better than the ones I found.

 

[Jimmy Holder]

Your client, who works entirely from home and has his own limited company, can claim a portion of his electricity costs as a business expense. There are two main methods:

1. Flat Rate: Claim £18 per month without needing receipts.
2. Proportional Method: Calculate the business use of home utilities by dividing the electricity bill by the number of rooms and then by the percentage of time each room is used for work.

 

[MikeJ]

Two years later...

 

[Onthebrightside]

I think it's always good to put definitive answers like that on these posts as people searching can quickly see the answer their looking for on the site. People search through these years later to get the answers AND our end of year accounts are coming up again next month so it's a good reminder

 

[Gecko001]

What do you mean by client?

Exactly my thought. I hope you are not, but if you are in the business of advising clients on their finances or tax affairs for their business, basing you advice on answers from people on an internet business forum is not only unwise but verging on the negligent.

 

[Onthebrightside]

Exactly my thought. I hope you are not, but if you are in the business of advising clients on their finances or tax affairs for their business, basing you advice on answers from people on an internet business forum is not only unwise but verging on the negligent.

Each of my clients has their own accountant - but I find they sometimes forget things, so it good to clarify so that I can nudge the to make sure their doing it. When I originally asked that question the accountant looking after one of my clients hadn't claimed it until I nudged. I also find it's useful to run an Income and Expenditure spreadsheet, because one of my clients accountants were out by 5.5k on end of year accounts and I had to show them that the invoice they'd included had been withdrawn by the client who had issued a credit note (I don't think they'd picked up the credit note). Hope that allays everyone's fears