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Illuminating!
Does this explain why I am having problems sourcing daylight bulbs at the moment too?
No Stalemate - I got indirect Clarification!
I had this clarified by the HMRC internet system when it would only accept the SA return if the service company section was NOT Completed!
I thought I would bite the bullet a few weeks ago, and completed this section. Only to have it REJECTED - as this section had been completed!
So no implications for my clients for not completing this section of the SA returns!
Candles et al.
Candles! Arrrgghh
That's a clear vehicle for tax optimisation and I missed it!!!
I was of course trying to keep a simple picture and so I excluded the thorny issues of two people sharing the same lightbulb, two lower power lightbulbs being used to produce the equivalent of 60W whilst being taxed at the lower 30W rate.
I excluded the fact that single people really don't need 60W, should make do with 45W and so should be taxed accordingly.
There is also the problem of children. Some wily parents will donate the bulbs to their kids who are tax exempt and yet all will sit in the same room and benefit from the same light.
I won't even go into portable light-generting devices. It's already complicated.
There is also the problem of cats. They avoid the need for bulbs entirely by being able to work in low light conditions. Clearly they should all be rounded up and shot together with their owners who under ML regs must surely be culpable .
Rebecca
I sincerely hope that you have a scheme reference number in hand. You must have met at least 4 hallmarks with that little ruse!
Can I interest you in..
a new product?
It emits, light, but is not a lightbulb. It uses a modified form of fire, which does not meet the technical definition of "fire" as such, and my new product is easily portable and does not even need an electricity supply.
These are available in limited numbers, and will therefore command a high price, enabling purchasers to avoid both lightbulb tax and fire permits.
If you are interested, I shall require you to sign a confidentiality clause not to reveal how candles work, or where they can be bought.
Not only
You have forgotten to mention that if you and your wife both use a 30W bulb, you are taxed as if you are using 60W since your wife is not really using the light.
Also if you are using a Managed Lighting Service from your accountant, or Barry Robulb, you have to pay so much tax it's not worth it.
Lightbulb definitions
I think it's an issue with definitions.
Once upon a time lightbulbs were simple - a 60W bulb was self explanatory and so they were taxed on the basis of 60W.
Then someone came along and invented low-energy bulbs that had an actual power consumption of 11W and a nominal light output of 60W and an actual light output closer to 45W.
"Hold on" says the taxman. "People using lower energy bulbs are avoiding tax and we are losing out. So we will declare that low energy bulbs have a deemed taxable output of 60W and we will claim tax on the deemed wattage".
That went well for a while even though taxpayers kicked up a fuss.
Then someone noticed Fire. Fire also emitted light.
The taxman thought "People might use the light from fire to avoid paying our bulb tax. We need to monitor this situation" - and so Fire Permits were born.
The next year after the permit was born the taxman decided that every fire that had a permit had a nominal light output of 10W and started issuing tax demands accordingly. At the same time taxpayers could opt for a variable rate tax by submitting a timelog of actual light-output from the fire.
Taxpayers became upset.
Some wily taxpayers worked out that since lightbulbs also emit heat they really should have a taxable deduction made for the heat output since fires are not taxable. They won that concession and lightbulb tax takes fell.
Finally the taxman threw up his hands and said "It's all a bit more complicated than we thought".
Of course, this is clearly fantasy, such a thing would never be admitted.