Solar panels on home for home business

[GemeenAapje]

Hi all

I need advice about bookkeeping.

I run a website design company (Ltd company) from home where I have multiple servers running.

I've calculated it's costing me £700 in electricity every year, personally. Half of my energy bill! I have meters on my power sockets to evidence the kilowatts used.

I would like to either claim this as an expense on the company, or have the company pay for solar panels on my house to offset the kilowatts used every year.

Could someone help advise me what is possible / allowed under UK HMRC rules?

My accountant says it's not allowed, but I feel it should be.

Thanks in advance

Matt

 

[STDFR33]

Why do you feel that your accountant is wrong given that this is their job?

The company can pay for this. But there will be other tax consequences that renders doing this pointless.

 

[GemeenAapje]

He may be right, but I just would like a 2nd opinion.
Or can the company pay me personal an amount towards the electricity costs if the energy used can be evidenced?

It just doesn't seem unreasonable to ask which is why I can't understand why it's not possible

Thanks
Matt

 

[GemeenAapje]

PS: I've had bad experience with my accountant in Holland. Lots of things needed fixing and I had to report him to the Dutch HMRC. Not all accountants are equally good ;-)

 

[Mr D]

Are you wanting solar panels fitted to the building you use solely for your business?

Or your home where you also personally benefit?

That's the issue.

Just out of interest, are you currently claiming for part of your electricity bill?

 

[GemeenAapje]

My roof can only hold panels for about 90% of the power used by the servers. So there's no way I could personally benefit from the panels.
I just thought 1 invoice (for the 1-time investment) would be easier than a yearly payment for power costs (if that's even allowed).
I also want to be able to advertise to my customers that the servers at run on 100% renewable energy.

No I'm not claiming part of my bill because it's in my personal name. I've asked my accountant also if it's possible to claim part of that. Waiting on his answer.

 

[Scalloway]

You can enter into an agreement between you and your company where it reimburses you for costs you incur. You will need to include this income on your personal self assessment but it will be matched by the costs you incur so there will be zero personal tax payable.

 

[Mr D]

My roof can only hold panels for about 90% of the power used by the servers. So there's no way I could personally benefit from the panels.
I just thought 1 invoice (for the 1-time investment) would be easier than a yearly payment for power costs (if that's even allowed).
I also want to be able to advertise to my customers that the servers at run on 100% renewable energy.

No I'm not claiming part of my bill because it's in my personal name. I've asked my accountant also if it's possible to claim part of that. Waiting on his answer.

And if you stopped working your business or it died you'd remove the panels?
And you aren't ever intending to sell the house? So no complex tax arrangements to do with business assets being sold?

Buy the panels if you wish. Just don't expect to have it impact the tax your company pays.

 

[GemeenAapje]

Thanks for all the answers. I think I know enough now and will discuss with my accountant some more this week.
Have a nice weekend everyone

 

[TheCyclingProgrammer]

I don’t think you can claim for the cost of installing solar panels without tax implications as it’s making an improvement to your personal home.

You can however claim back from YourCo for the *additional* electricity costs you are incurring but HMRC would expect you to keep some evidence how you have calculated this cost - you may be able to use the power consumption of the servers and the cost per kWh for example to back these claims up.