So, er, how do I apportion a claim for broadband and other costs? By Nichola Ross Martin
This article looks behind HMRC’s new guidance on fixed line rentals and broadband and examines the potential problems that taxpayers are going to have in trying to work out what is “reasonable” in terms of apportioning business useage not just for broadband, but all types of expenses that have a mixed purpose.
I posed the question “Is broadband allowable for tax?” (in connection with home working) back in July last year and hit a nerve.
Continued...
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Are we only dealing with the Self Employed?
EIM32940 - Other expenses: telephone charges
This area of HMRC guidance still exists and I assume the article only related to Self Employed persons.
The restriction for not allowing any proportion of telephone rental and likewise broadband should still therefore be the case.
Any benefit in this respect is still I believe a pecuniary liability under the duality principal and wholly exclusively and necessary provisions.
Broadband ?% business Use
I got broadband for the business (and pay business rates, to ensure a good service) and there expect to claim 100% of it.
If I didn't need the business quality - I would not pay for it, as it is now possible to get it free! It is only worth getting it free for personal use - but as thats not why I have it, I can't use the free services that are increasingly available for the business.
And only last week, for a secondary business that I have, I added a VOIP telephone as I did not want to put a 2nd line in - and the VOIP phone (through broadband) has a "voice mail" facility thanks to Broadband. So of course the business uses the Broadband 24hrs a day - even if I don't.
I often leave a screen up (personal use) to look at briefly whilst waiting for other programs to load - so my personal use is during my "time wasting time" rather than a dedicated personal use time. But its not a priority - just incidental to my use and not possible to measure.
Ian
I think that you are confused, go back to
my previous article . You can see that you can now apportion fixed standing costs like rental/broadband.
Frauke
If you have a business broadband contract in your home then you can claim it all, unless of course your private use is so great that an apportionment is more reasonable. All down to judgment!
Pepper v Hart
Surely we have a Pepper v Hart argument with broadband. If I need broadband at home to work, then there is no marginal cost to any personal use at all. If that is the case, then there is no benefit.