Does the business pay your electric bill ?

[lazy farmer]

As above really.
We have a separate metre for our house which I pay out of profits rather than before (if you see what I mean)The other two house occupied by senior partners are on the farm meters.

 

[SRRC]

Any properly done accounts will allocate a private consumption value to such things. This is done in the minutiae of the tax calculations and may not be immediately obvious by just looking at the published p&l accounts.

 

[Kiwi Pete]

25% paid by business, 75% by me

The business probably uses 2% of the electricity, if that, but it's a nice perk!

The co. simply pays for 3 months, and I pay for 9 months

 

[Johnnyboxer]

I pay mine

 

[teslacoils]

Separate meters.

 

[SRRC]

The justification for it being done that way is that it's common for a farmhouse to be used for the business as well as for domestic, an office for example. HMRC won't query a set % if it looks sensible.

 

[farmerm]

I claim 25% of electric for business use, perhaps should be more, light/heat/computer power for the office and my meter also powers the borehole pump.

 

[Goweresque]

The business account pays the electric bill for my house, the accountant then allocates a % of that to business costs, and the remainder is put down as a personal drawing from the business, so taxable. Given he told me to only reclaim 10% of the VAT on the bills I assume he's using the same proportion for business expenses purposes, ie I'm paying 90% of the bill out of private income.

 

[nonemouse]

Our meter covers house plus farm, just work on a % for both claiming vat back and to allocate a cost to private drawings ( paid from taxed income) never had an issue with hmrc

 

[Sonoftheheir]

Only the main farmhouse is on the main meter, 2 other properties on the farm have separate. I pay mine out of my drawings, don’t claim any vat back.

 

[Farma Parma]

Let the Accountant get on with how its split up but all paid out of farm account & sep meters in buildings to farm house & funny enuff diff electric suppliers.
one wont do the other

 

[Bongodog]

If you ever get a visit from the VAT inspector its one of their standard things to look for, apportionment of the electric between business and domestic. Its best to have it clearly shown or they move on to other matters. Apportionment of road fuel is another pet subject

 

[Farma Parma]

If you ever get a visit from the VAT inspector its one of their standard things to look for, apportionment of the electric between business and domestic. Its best to have it clearly shown or they move on to other matters. Apportionment of road fuel is another pet subject

all documented in the quarterly VAT report which i must say is impressive.