Laundry Energy Costs.

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Drax
Posts: 185
Joined: Thu Jul 21, 2016 4:36 pm
Location: Yorkshire Dales

Laundry Energy Costs.

Post by Drax »

We do our own laundry for our holiday let and I have just realised I have not been putting the costs on our tax return for electrical energy used for FHL laundry by our washing machine and tumble dryer.
Because we do the laundry at our home it is somewhat difficult to separate costs between our personal and FHL laundry but the extra energy used, especially use of a tumble dryer, must add up.
Do other members, who in a similar situation with regards to laundry, put the extra energy costs on their tax returns and if so how is it calculated?
Keep your powder dry.
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greenbarn
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Joined: Sat May 30, 2009 6:41 pm
Location: The Westmorland Dales, Cumbria

Post by greenbarn »

Yes - I went through the process of estimating the energy costs based on the load capacity of the washing m/c and the tumble dryer, the time taken for a load and the current rating of the machines; then similar for ironing costs - time in use, rating of steam press and roller iron.

For our semi-commercial machines a “load” is equivalent to 2 guests (an interesting way of visualising guests...) I ended up with a figure of around 5.5 kWh per guest - yours may be a bit different. That figure shouldn’t really change year on year unless you suddenly double the towel thickness or get significantly different new machines. It’s then just a case of using the prevailing energy cost per kWh (or unit - same thing) and multiplying by the number of guests. Not an exact science but close enough and justifiable.

My calculated cost per guest for the last tax year I think was around 80p to 85p. It’s not huge but it all adds up, a bit like the allowance for “use of home as office” (50 quid or something?)
Drax
Posts: 185
Joined: Thu Jul 21, 2016 4:36 pm
Location: Yorkshire Dales

Post by Drax »

Thanks for this greenbarn, your system seems quite logical and justifiable and I will apply it to my tax return.
You have also stated the allowance "use of home as office". That is also something I do not claim for. I will look into the possibility whether I can claim for that also.
Thanks once again for your advice.
Keep your powder dry.
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greenbarn
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Location: The Westmorland Dales, Cumbria

Post by greenbarn »

I think there’s a straightforward flat rate allowance of £10 per month for “use of home as office” which makes life simple - no calculations, apportioning etc, nor concerns about having a room used exclusively as an office which could affect CGT allowance when selling the home. I leave it to my accountant - part of saving me enough to cover some of his fee!
Drax
Posts: 185
Joined: Thu Jul 21, 2016 4:36 pm
Location: Yorkshire Dales

Post by Drax »

greenbarn wrote:I think there’s a straightforward flat rate allowance of £10 per month for “use of home as office” which makes life simple - no calculations, apportioning etc, nor concerns about having a room used exclusively as an office which could affect CGT allowance when selling the home. I leave it to my accountant - part of saving me enough to cover some of his fee!

I have found this allowance, it is termed the 'Flat Rate Method' and it is as you have described. It is incremental and depending on how many hours you claim for 'use of home as office' goes from £10.00 per month upwards.
Keep your powder dry.
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