Minimum charge for something to be considered work


G

google

Hi, I'm wondering if anyone can tell me what a minimum charge for
something to be considered work would be...

I am a full-time employed and also registered self-employed so I can
do a very small amount of web development here and there. The self-
employment accounts for less than £1,000 each year.

For a friend's business, for free, I built a website and I host it,
also for free, on an on-going basis. I have a server in London which I
use to host it and for which I pay about £215.00. This is an old
friend and on a personal and professional level I am more than happy
with this situation. I would have the server anyway for purposes of
skills development useful to both my employed and self-employed work.

Because I am not charging my friend anything I assume that the cost of
maintaining the server is not tax deductible. However I also assume
that if I did charge them the cost of the server would be tax
deductible. So my question is...

How little I would I need to charge the friend's business in order for
this to be considered a business arrangement and for the server's cost
to be tax deductible?

Is anyone in a similar situation or got any advice?

Cheers

Mark
 
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J

Jonathan Bryce

How little I would I need to charge the friend's business in order for
this to be considered a business arrangement and for the server's cost
to be tax deductible?

Is anyone in a similar situation or got any advice?
Enough for it to be a trade where there is a prospect of you making a
profit, rather than just sharing the cost of something with a friend.
 

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