How to Apportion Overheads to a Buisness

fraggle79 · 28-08-2009 2:35pm #1

Folks,
Wondering if anyone can help;
We will be moving the business to the garage in the coming week given the difficult trading environment and we have a few questions that someone may be able to help.

Energy
We will be using the same vendor that supplies the house and will receive one monthly bill, both for the garage (the business) and the house. How do I apportion the energy costs to the business? How do I do the calculation? What calculation is generally accepted by the Revenue?

Fixtures
Our spend on fixtures will be around €2k, given the small amount can we take the hit in the P&L and reclaim the VAT rather than applying the confusing rules of Capital Allowances.

I have checked the revenue website and they just instruct to seperate costs between private and personal use but they do not give details on how these are calculated, perhaps you could include some examples.

Your comments would be much appreciated,

Sincere thanks,

Jadaol · 28-08-2009 9:38pm

On the first one, you would apportion a % of light heat phone etc. based on business' use of overall cost. This needs to be reasonable as if revenue ever comes looking, they may think you've allocated too much and it could cost you. Your best bet is to contact revenue by phone and ask them.

On the second, it's kind of up to you given the small sum involved, you can write it off now to the p & l and this will bring your profits down for that year.

Whatever way you do it, you claim the vat back immediately and keep the invoices as proof.

Contact revenue by phone for anything you're not sure of. That's what they're there for

How to Apportion Overheads to a Buisness

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