Daughter has set up new business in our home. Are we eligible for any benefits?

MM2002
MM2002 Posts: 157 Forumite
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edited 13 October 2022 at 1:47PM in Small biz MoneySaving
Hi All
Our Daughter has set up a business as a lash/beauty technician in our garage that I have converted into a salon. She is doing amazingly well for a 17 year old, and the business is now in its 2nd year(Super proud parents!!)

We have recently completed her first self assessment, and as expected for a new business after set-up & product costs etc she is under the threshold for any tax payments this year.

As the salon is setup in the garage she has heaters set up that in these coming winter months are on for anything between 8-12 hours a day, obviously costing us, her parents dearly. Are we entitled to any rebate from OUR tax/electricity bill as with the price increase lately this is going to start hitting us hard and if so how do we claim? 

Thanks for any replies in advance

MM2002
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Comments

  • prowla
    prowla Posts: 13,144 Forumite
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    edited 11 October 2022 at 1:37PM
    No quite answers to the question, but some things which need to be considered.
    • Has she got public liability insurance?
    • I would think that the benefits would be in her ability to offset costs against tax due.
    • Also, do your mortgage and house insurance allow running a business from the premises?


  • MM2002
    MM2002 Posts: 157 Forumite
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    prowla said:
    No quite answers to the question, but some things which need to be considered.
    • Has she got public liability insurance?
    • I would think that the benefits would be in her ability to offset costs against tax due.
    • Also, do your mortgage and house insurance allow running a business from the premises?


    Hi, yes she has insurance and i have made mortgage and house insurance aware and am paying extra for this. Again, can I claim any of this as its not MY business, but costing ME?
  • DE_612183
    DE_612183 Posts: 1,780 Forumite
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    as she has a business - you will need to INVOICE her for whatever costs you have incurred - she can then pay you and claim those as expenses ( is she a Ltd co - or sole trader? ), however if she does pay you, you in turn have to declare that as income which will then be taxed.

    In a roundabout way there will really be little gain.
  • lincroft1710
    lincroft1710 Posts: 17,600 Forumite
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    As @DE_612183 says you have to invoice her for your costs etc.


    However as you have converted your garage into a dedicated commercial premises, it will probably be subject to non domestic rates, although as there is currently 100% relief on property with a Rateable Value of less than £!2,000, your daughter wouldn't probably pay anything. There is a possibility (I stress possibility) your Council Tax band may be reduced because of this.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • DullGreyGuy
    DullGreyGuy Posts: 10,186 Forumite
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    There will also be the question on if you have had planning permission for the change of use as presumably your currently only approved for domestic habitation. 

    Curious to know which home insurer you are with that is happy with a salon being run in the property... most are happy with an admin only business but most run a mile for any business where customers will be coming on the property.
  • Trying to get the gist of this. 

    Your daughter is running a business without incurring the bills. 

    You are paying the bills. 

    She's doing "amazingly well".
  • billy2shots
    billy2shots Posts: 1,122 Forumite
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    Trying to get the gist of this. 

    Your daughter is running a business without incurring the bills. 

    You are paying the bills. 

    She's doing "amazingly well".


    Haha,

    Does the OP fancy becoming my business partner?
  • lincroft1710
    lincroft1710 Posts: 17,600 Forumite
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    Trying to get the gist of this. 

    Your daughter is running a business without incurring the bills. 

    You are paying the bills. 

    She's doing "amazingly well".
    "She's doing amazingly well for a 17 year old"
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • If I’m understanding this correctly your daughter is running a business in your converted garage and is not paying you for the energy the business is using.  If so than as far as I am aware there isn’t anything you can claim for this, your daughter needs to pay for this as part of the costs of her business.

    Until recently energy costs have not been capped for businesses so your daughter has already been benefiting by being able to use energy at consumer rates.  Many businesses are struggling with the rise in energy costs and are having to make difficult decisions. I think you and your daughter are going to have to look at how much she is making and how much energy she needs to use, and work out if her business is viable, I understand this will be tough with her being 17 but it really is very difficult for many businesses right now.

    Good luck to your daughter with whatever decision she makes, it’s not easy to start a business for anyone right now.
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