We own a butchery, but the space of the premises is confined and we were forced to move to a bigger house to accommodate products being manufactured at home as the expansion for the premises may not be possible due to a huge Vodacom Tower erected at the rear the building.
The square meter of the house we are renting is 235m; the space we utilize for the business is 71.95m. I am aware of the Income Tax Act, 1962 Sections 11(a), 23(b) and (m), (filled with unnecessary jargon, if I may add) but not sure if it really applies to me.
The electricity consumption is as follows:5 -6 x 50watt fans (depending on the quantities that need to be prepared) and 1 x 25watt for drying biltong, etc. These fans are used for 24 hours 5 days a week.
We use the oven for preparing gammons and other meats at 3000watts, for 4 hours twice a week every week.
We also use the washing machine for staff uniforms, but I am not that concerned about this consumption, however, the others form a huge chunk of my expense.
How do I determine which portion of the electricity bill (for VAT purposes) is for business use every month, and how do I format this expense on paper for SARS. If you can provide some information or a link, it would be most appreciated.
We work 14-18 hours a day, eat at work and the only time we are at home is in the evenings and on a Sunday afternoon.
Any assistance with regard to this matter would be most appreciated.