Can I claim costs on this legally?

[southcoastboile]

So I'm thinking of starting to supply and install underfloor heating. Currently we just do plumbing and boilers.

If if I were to install underfloor heating in my house throughout as an experiment to ensure its something that is something that will benefit the business of i were to get into it.

I.e, the time it takes to install, if it would be profitable/beneficial for the business, see if it's the male of the system is a manufacturer we want to deal with in the future on customers houses etc, if it's something that we can build into the business etc.

would that be something that the company could pay for and I would not personally be taxed on the cost of the work as I am doing it to benefit the business in the long run. Obviously as its in my own home I would personally benefit also.

I I don't want to do anything illegal but I can't really find any info on it.

 

[village idiot]

So effectively you're looking for a FREEBIE & you want the tax man to foot the bill? No. It won't work. You have to pay for it out of your own pocket

 

[joni os]

If you have a limited company, it could make a huge loss on your house and offset it against other works. Hope carpets don't get damaged, otherwise company might have to replace with new.

 

[chris watkins]

I am think of diversifying into the following areas -

Kitchens
Bathroooms with wet rooms (tanking)
Solar hot water
swimming pools
PV

My house could really be a proper test bed for you to work on!!

 

[gassafe]

Just buy the kit through the company & fit it lol... Like the rest of us would

 

[julesverne]

could it be classed as research and development.

 

[chris watkins]

Just buy the kit through the company & fit it lol... Like the rest of us would

No surely not, you wouldn't do things like that would you?

No wonder my tax bill is so B.. high!!!

 

[village idiot]

could it be classed as research and development.

I think so . I'm thinking of going into Groundskurce, Airsource and all that 'Green' technology stuff but as my company has done nothing like it b4, I'd like to use my house as a "test" then bill everything through the company?
Trouble is: The tax man will take a dim view of it. Infact, it may open you and your company up to a massive investigation goong back years: as the tax man may suspect you've used the method in the past to reduce company profits and evade tax. The stress would be unbearable, honest. Just pay for it & charge your company a "Consultancy" Fee.

 

[julesverne]

I think so . I'm thinking of going into Groundskurce, Airsource and all that 'Green' technology stuff but as my company has done nothing like it b4, I'd like to use my house as a "test" then bill everything through the company?
Trouble is: The tax man will take a dim view of it. Infact, it may open you and your company up to a massive investigation goong back years: as the tax man may suspect you've used the method in the past to reduce company profits and evade tax. The stress would be unbearable, honest. Just pay for it & charge your company a "Consultancy" Fee.

Fair point.
You could just ring hrmc and ask em. At least then you'll get an answer one way or the other.

 

[southcoastboile]

Okay I'll avoid that then ha ha.

Not worth the risk of its not allowed.

I thought that would be the case but you never know.

 

[oz-plumber]

Just buy the kit through the company & fit it lol... Like the rest of us would

And don't forget to work out the T's & C's with your wife prior to starting.

 

[newcastle phill]

Id say. Yes. Training and r and d.

 

[southcoastboile]

Yeah it's true, you are training the other engineers to do it and I spoke to nu heat and they said they would want to see a finished job before allowing us to be an approved contractor so in a way I think you could argue it is allowed but it could back Fire.

 

[Ric2013]

I seem to remember something on the HMRC website about training costs not being tax deductable if the training is to allow you to do something you aren't already doing. So since you say you don't already fit underfloor, they might consider it to be a new business. On the other hand, you won't be able to claim it as a capital gains tax offset when you sell the house if it's a research project, so you might argue that it is a logical step to keep you doing heating work as it becomes more commonplace.

But then is your house's heating a domestic system anymore or does it become a business venture that needs to pay commercial rates

Whatever HMRC tells you, get it in writing. Apparently someone once revamped the kitchen in a rental property with designer kit and sold the place some time after. They didn't claim the full cost when they did the work as it was more an upgrade than routine maintenance, but then when they sold, the taxman said 'that isn't a capital expense: 'one kitchen is much the same as any other'.

 

[rocketmanbkk]

As said put the materials down to the business expenditure but you can't bill yourself labour

I've got a rented flat, any work I do on it myself is free labour. Materials for that are allowable.

 

[rocketmanbkk]

I seem to remember something on the HMRC website about training costs not being tax deductable if the training is to allow you to do something you aren't already doing. So since you say you don't already fit underfloor, they might consider it to be a new business. On the other hand, you won't be able to claim it as a capital gains tax offset when you sell the house if it's a research project, so you might argue that it is a logical step to keep you doing heating work as it becomes more commonplace.

But then is your house's heating a domestic system anymore or does it become a business venture that needs to pay commercial rates

Whatever HMRC tells you, get it in writing. Apparently someone once revamped the kitchen in a rental property with designer kit and sold the place some time after. They didn't claim the full cost when they did the work as it was more an upgrade than routine maintenance, but then when they sold, the taxman said 'that isn't a capital expense: 'one kitchen is much the same as any other'.

As for training, the accountant I spoke to said some training is allowable

Eg. Gas training for a plumber, unvented etc.

BUT he said if I wanted to learn to fix car engines then it won't be allowed.

I do prop maintenance inc. plumbing in my HMRC tax title so he'd be happy to put through tiling, plastering & that sort of thing

Unfortunately I can't get away with dress making, damn him!

 

[rocketmanbkk]

I seem to remember something on the HMRC website about training costs not being tax deductable if the training is to allow you to do something you aren't already doing. So since you say you don't already fit underfloor, they might consider it to be a new business. On the other hand, you won't be able to claim it as a capital gains tax offset when you sell the house if it's a research project, so you might argue that it is a logical step to keep you doing heating work as it becomes more commonplace.

But then is your house's heating a domestic system anymore or does it become a business venture that needs to pay commercial rates

Whatever HMRC tells you, get it in writing. Apparently someone once revamped the kitchen in a rental property with designer kit and sold the place some time after. They didn't claim the full cost when they did the work as it was more an upgrade than routine maintenance, but then when they sold, the taxman said 'that isn't a capital expense: 'one kitchen is much the same as any other'.

You can now replace wooden Windows to dg units & claim

You never used to be able to do that

 

[southcoastboile]

If the labours not an allowable business expense then surely the materials won't be allowable?

And are you saying if I change the windows in my house from wooden to modern I can put that through as A business expense? That doesn't sound right.

 

[rocketmanbkk]

If the labours not an allowable business expense then surely the materials won't be allowable?

And are you saying if I change the windows in my house from wooden to modern I can put that through as A business expense? That doesn't sound right.

Sorry, I was talking about a rental property regarding Windows

As for materials, you can just buy them through your business. That's ok. Even if it's van stock. Labour, you can't bill yourself & really stuff you do on your own house isn't allowed material wise.

 

[rocketmanbkk]

Can this go in the arms?

 

[joni os]

The Tax man is not stupid. Providing people don't take advantage a certain flexibility will be overlooked, if for no other reason than a more rigorous approach would not be cost effective. A plumber working on his own house is no more liable for labour costs than a school teacher coaching his own children. Regarding material. Does a green grocer pay for the family veg? The permutations that leave us with surplus stock can be advantageously applied.

 

[rocketmanbkk]

As long as you don't build a house & claim for it whilst saying your earning are negative the taxman knows what's what

Just be sensible