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laundry expenses/costs

 
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ClareW



Joined: 18 Feb 2016
Posts: 81
Location: Malvern, Worcestershire

PostPosted: Mon Oct 30, 2017 11:33 pm    Post subject: laundry expenses/costs Reply with quote

Hi, I have been a bit quiet on here since going 'live' with my let a year or so ago! Am just getting my first years expenses together and seem to remember there is some kind of formula to use to work out expenses of doing laundry? I have been doing all the washing and ironing myself at home. Have tried to search the forums but can't find it. Also, I presume I can claim 45p/ mile for each journey I make to the cottage for change overs etc?
Thanks in advance!
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akwe-xavante



Joined: 01 Jul 2015
Posts: 268
Location: East Yorkshire

PostPosted: Tue Oct 31, 2017 9:35 am    Post subject: Reply with quote

"formula to use to work out expenses of doing laundry?"

Do you mean expenses of doing laundry or do you mean expenses of doing the entire changeover?

I'm guessing you mean that your trying to calculate the entire cost of a changeover here and the laundry and travel expenses are a part of that.

I've been self employed for over 20yrs and have had a variety of different businesses in this time and have had many a conversation with HMRC about this and that and I've found them to be flexible, understanding and fair on the whole. But importantly flexible insofar as if i'm questioned about how i calculated the cost of this that and the other there are often flexible. If you can demonstrate that you have thought about how to calculate a cost and have been as honest as possible about how you arrived at the cost of something they accept it, 'usually'.

HMRC accept allsorts of ways of calculating this that and the other as long as you can say "I calculated the cost this way" they'll accept it. Make sure it works in your favour though but not too much.

45p mile on a return journey is acceptable and is a fairly STD way of doing things as far as HMRC is concerned. Your calculating the entire cost of the journey though doing it this way, part fuel, part tax, part repairs and maintenance, insurance, mot and on. You can't claim 45p mile AND all other costs incurred using the vehicle too.

I started doing my own laundry but after a year I decided it was far too time consuming and not that much cheaper than having it done for me. "Don't forget you'll go through far more washing machines and dryers etc" The money saved doing it myself wasn't worth the time wasted doing it myself. I would look online and find out how much your local launderettes charge per item and work out what it would cost you per room and claim that cost each changeover. Doesn't matter if each week the cost varies a little charge yourself the full amount for the room. HMRC will accept this as a fair calculation. You've thought about it and using information you've obtained from your local laundrette you arrived at a fair cost even though you've told them your doing it yourself if asked of course.

Don't forget you can claim other things too, such as your lunch on that day and the welcome pack. If you have somebody helping you, you can claim I think it's up to £40 a day in casual labour as a cash payment. You can't claim for your own time.

I have a credit card specifically for my Holiday Let and it's used for nothing else and I purchase all the things I need for the same on that card and it all goes through as expenses. Cleaning stuff, replacements, repairs, lunch, the welcome pack etc, everything else to do specifically with the cottage. So much easier than trying to separate out what you purchased for you and what you purchased for your holiday let.
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newtimber



Joined: 24 Nov 2012
Posts: 1643
Location: Brighton

PostPosted: Tue Oct 31, 2017 11:26 am    Post subject: Reply with quote

As you cannot claim anything for your time, there is no point comparing with the local launderette's costs.

You can claim the cost of doing the laundry at home - ie proportion of repairs to washing machine, electric, soap powder, heating, wear and tear etc

Unless you are a long way from your property, I do not think you can claim for lunch.

I also don't think you can claim your £40 casual labour without any invoice.
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greenbarn



Joined: 30 May 2009
Posts: 6007
Location: The Westmorland Dales, Cumbria

PostPosted: Tue Oct 31, 2017 11:29 am    Post subject: Reply with quote

I once did a calculation for our electricity costs for washing, drying and ironing and I arrived at a figure of £0.81p per guest, which is the figure I use for our accounts.
That was based on an electricity cost of £0.15p/kWh and the rating and load of our appliances, with a bit of wet finger waving as well. I could certainly justify it.
Detergent etc just gets entered at cost.
If youíre doing it yourself thereís no point for tax purposes in entering anything for time.

Donít know if thatís any help!

PS Newtimberís post brings up another point about use of machine, replacement etc. We have a washer, dryer, steam press and roller iron that are dedicated to business use so all their purchase/repair costs are put through the business.
If youíre ďsharing" a domestic machine it might be worth estimating what percentage of the use is business to offset against replacement/repairs etc. It could add up to a worthwhile sum.

PPS(!) Weíre on site so mileage isnít much but does include regular trips to buy supplies etc etc. I give my accountant the total mileage and Iíve just checked and he is indeed using £0.45p per mile as the allowance.
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ClareW



Joined: 18 Feb 2016
Posts: 81
Location: Malvern, Worcestershire

PostPosted: Tue Oct 31, 2017 11:54 am    Post subject: Reply with quote

Thanks all for your help- I am aware that I can't claim for my time- I sometimes use the washing machine at the cottage when doing a change over but usually use my machine at home, so wondered if there was a standard formula for doing laundry at home inclusive of electricity, water, detergent wear and tear on washing machine. iron, dryer etc similar to the 45p/ mile for car usage. Am seeing an accountant on Weds do will ask him- was hoping to go to him with the figures, but can ask for his advise instead! Thanks again Very Happy
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gardenboy



Joined: 02 Jul 2011
Posts: 251

PostPosted: Tue Oct 31, 2017 1:25 pm    Post subject: Reply with quote

I am in spain so do all my own laundry as it takes 1 hr to dry on the line. The local laundries comingle all the washing and boil the hell out of it. Also, while washing and drying i am doing other things.

However, if i was in the uk i would use a laundry. For my uk property venture i charge 12p per mile cycling mile for business use. Also,, all those sundry costs that add up over the year, stationary, photocopying, postage etc.
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akwe-xavante



Joined: 01 Jul 2015
Posts: 268
Location: East Yorkshire

PostPosted: Tue Oct 31, 2017 8:30 pm    Post subject: Reply with quote

"As you cannot claim anything for your time, there is no point comparing with the local launderette's costs."

Don't agree. Phone HMRC and ask, i have. You can do it this way but you cannot claim for dropping it off at the laundrette and picking it up afterwards. Your estimating how much it's costing you to do your own laundry, doing it in this manor is acceptable to HMRC.

"Unless you are a long way from your property, I do not think you can claim for lunch."

Asked HMRC and there answer was yes i can unless i live next door, i don't.

"I also don't think you can claim your £40 casual labour without any invoice."

This has been common practice for decades especially within the building trade as long as your not casually employing the same person several days a week. Asked HMRC and i can casually employ someone as required to help me on changeover day if required to a maximum of £40 without a reciept. If i was to do this every week with the same person then things would be different. If my place is full, 4 people with child and or dog HMRC say yes i can. Two people only then no i can't. My argument was that i cannot muck out the place safely and comfortably in 5hrs but i can clean the place thoroughly and safely in 5hrs without help. If i feel that i'm going to struggle for whatever reason incuding feeling ill i have a neighbour i can call on as required and HMRC say i can pay the person as casual labour up to a max of £40 as long as i don't abuse it and i document when, why and how much was paid.

I have another business too and i cannot afford to regularily / perenantly employ a person but on occasions i need help. HMRC said that i can casually employ a person and pay that person up to £40 a day as casual labour without a receipt but they made it clear that i should document the payment should it be required in future so that i do not foget what it was for. I cannot employ the same person in this manor day after day though but if i had a three day job i needed help with for example then that's ok.

If i was to decide to change an item of furniture i cannot move and or lift myself safely on my own then i can casually employ a person to help and pay the person up to £40 without a reciept. HMRC said yes i can. Now what you do is write out on a piece of paper what it's for and when so that theres a record so that in 5yrs time you don't forget if questioned.

HMRC are very approacheable and offer valuable help and guidance, don't be frieghtened to contact them directly that's what they are there for. There 0300 numbers are local call rated. If the initial person cannot answer your question then some other person phones you back within 72hrs but i've usually had my callback in less than 48hrs.
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ianh100



Joined: 10 Jan 2013
Posts: 527
Location: Sherborne Dorset

PostPosted: Wed Nov 01, 2017 9:12 pm    Post subject: Reply with quote

Interesting comments here about what can be claimed. We live 150 miles away and make that journey at least once a month to do a deeper clean than our local house keeper. We have claimed mileage but nothing else. I have not even considered that I could claim anything towards lunch.

On the odd weekend we have actually paid to stay somewhere local as both properties were occupied, just attending to clean both the next morning and then drive back. It sounds like we could have claimed for some of these accommodation costs. Its rare but probably accounts to a few hundred pounds a year.

Anyone else got experience of that?
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akwe-xavante



Joined: 01 Jul 2015
Posts: 268
Location: East Yorkshire

PostPosted: Thu Nov 02, 2017 9:37 am    Post subject: Reply with quote

"On the odd weekend we have actually paid to stay somewhere local as both properties were occupied, just attending to clean both the next morning and then drive back. It sounds like we could have claimed for some of these accommodation costs. Its rare but probably accounts to a few hundred pounds a year.

Anyone else got experience of that?"

I do and can according to HMRC claim meals but not alcohol (If it's itemised on the bill!) and accommodation if I have to travel and stay over somewhere whilst working within my main businesses. Not sure about costs of meals and accommodation whilst servicing a FHL but I can't see why not though.

Phone HMRC and ask, you won't get your head bitten off, promise.
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