Author Topic: Income earning capacity of a home shop...  (Read 9073 times)

Offline John Hill

  • The Artful Bodger
  • Madmodder Committee
  • Hero Member
  • *****
  • Posts: 2016
  • Country: nz
Income earning capacity of a home shop...
« on: October 24, 2011, 03:16:48 PM »
Hypothetical at this time....
 
Many countries that provide an old age pension carry out a means test to determine eligibility then adjust the pension according to assets and income earning ability. This puts rather a damper on someone who is building a dream home shop to enjoy a comfortable hobby retirement if the PTB decide you should be making widgets for sale instead of model trains for the grandchildren.

At least in this country, one of the 'marks' of a commercial shop is the installation of 3 phase power. Just something to keep in mind.
From the den of The Artful Bodger

Offline Mike Cole

  • Jr. Member
  • **
  • Posts: 45
  • Country: 00
  • Wallasey Wirral
Re: Income earning capacity of a home shop...
« Reply #1 on: October 25, 2011, 01:31:33 PM »
At least in this country, one of the 'marks' of a commercial shop is the installation of 3 phase power. Just something to keep in mind.

What country is that then ? It cannot be the UK as otherwise I would have to say 'Total Rubbish' :poke:

Mike

Offline John Hill

  • The Artful Bodger
  • Madmodder Committee
  • Hero Member
  • *****
  • Posts: 2016
  • Country: nz
Re: Income earning capacity of a home shop...
« Reply #2 on: October 25, 2011, 03:31:54 PM »
Hi Mike, I am beginning to wish I had never made this commentn after the responses I got on another site! :lol:

However, here in New Zealand, 3 phase is usually not laid on to urban domesitc premises.  The practice is to put a transformer on the street and spread the load by connecting individual houses to single phase.


From the den of The Artful Bodger

Offline Pete49

  • Sr. Member
  • ****
  • Posts: 353
  • Country: au
Re: Income earning capacity of a home shop...
« Reply #3 on: October 25, 2011, 10:06:51 PM »
Thanks for the tip John. I'm not sure if it applies here in Australia as a lot of domestic places now use 3 phase for A/C but I will sus it out just in case. Still a few years to go but better safe than broke.
Pete
oops..........oh no.........blast now I need to redo it

Offline John Hill

  • The Artful Bodger
  • Madmodder Committee
  • Hero Member
  • *****
  • Posts: 2016
  • Country: nz
Re: Income earning capacity of a home shop...
« Reply #4 on: October 25, 2011, 10:21:15 PM »
Pete, I could not be sure if it applies anywhere but I did notice that in Australia they can 'deem' the earning capacity of an assett.  Our old age pension (NZ) is not means tested, yet, but they do keep talking about it.

This idea came about when I was buying a mill and the dealer asked if it was home or business, I thought he was talking about the financial break he might have given me but when we got that sorted he asked the same question again and I realised what he was really asking was single or three phase power.
From the den of The Artful Bodger

Offline Mike Cole

  • Jr. Member
  • **
  • Posts: 45
  • Country: 00
  • Wallasey Wirral
Re: Income earning capacity of a home shop...
« Reply #5 on: October 26, 2011, 04:50:07 PM »
The things you learn reading this site. I had Aus/New Zealand as a decent place to retire too. Guess I will be staying in the good old UK :beer:
To deem the earing capacity of an assett, that just crazy

Mike

Offline andyf

  • In Memoriam
  • Hero Member
  • *****
  • Posts: 1795
  • Country: gb
    • The Warco WM180 Lathe - Modifications
Re: Income earning capacity of a home shop...
« Reply #6 on: October 26, 2011, 05:26:38 PM »
It seems most unfair to me, too. In the UK, the state pension is paid in full (though "full" doesn't equate to "adequate to maintain a modest but comfortable, lifestyle") even if you're a millionaire, never mind having 3-phase power laid on. It's lumped in with any other income you have for tax purposes, though.

Apart from the injustice of it, your means-tested NZ system seems to discourage people from economic activity once they reach pensionable age, even if they want to carry on working. That can't be good.

Do they want you to start a gardening business if you have a hefty lawnmower, or demand that you rent out any spare bedrooms?

Andy
(who will start picking up his state pension in six months, Deus volenti)
Sale, Cheshire
I've cut the end off it twice, but it's still too short

Offline John Hill

  • The Artful Bodger
  • Madmodder Committee
  • Hero Member
  • *****
  • Posts: 2016
  • Country: nz
Re: Income earning capacity of a home shop...
« Reply #7 on: October 26, 2011, 06:20:46 PM »
Gheeeeze... I am sorry I even mentioned this.. :doh:  :doh: :doh: :doh: :doh: :doh:
From the den of The Artful Bodger

Offline dsquire

  • In Memoriam
  • Hero Member
  • *****
  • Posts: 2275
  • Country: ca
  • Kitchener, Ontario, Canada
Re: Income earning capacity of a home shop...
« Reply #8 on: October 26, 2011, 06:56:30 PM »
Gheeeeze... I am sorry I even mentioned this.. :doh:  :doh: :doh: :doh: :doh: :doh:

John

Isn't it funny how quick a round wheel can go square sometimes when you least expect it.  :lol: :lol: :lol:

Cheers  :beer: :beer:

Don

Good, better, best.
Never let it rest,
'til your good is better,
and your better best

Offline andyf

  • In Memoriam
  • Hero Member
  • *****
  • Posts: 1795
  • Country: gb
    • The Warco WM180 Lathe - Modifications
Re: Income earning capacity of a home shop...
« Reply #9 on: October 26, 2011, 07:06:04 PM »
Gheeeeze... I am sorry I even mentioned this..

...And having re-read your original post, I'm sorry I firmly grasped the wrong end of the stick  :doh:
Andy
Sale, Cheshire
I've cut the end off it twice, but it's still too short

Offline ieezitin

  • Hero Member
  • *****
  • Posts: 662
Re: Income earning capacity of a home shop...
« Reply #10 on: October 26, 2011, 07:25:38 PM »
John.
Nothing wrong with this subject, in fact it’s a great one.

I have for the last ten years made my hobby pay, in fact I have a plan for the next ten years to make it my sole retirement income, im 49.

Rich men don’t pay taxes!. My shop has been a tax sponge for 10 years. If anyone is interested I would freely give some pointers to this subject.

Anthony.
If you cant fix it, get another hobby.

Offline John Hill

  • The Artful Bodger
  • Madmodder Committee
  • Hero Member
  • *****
  • Posts: 2016
  • Country: nz
Re: Income earning capacity of a home shop...
« Reply #11 on: October 26, 2011, 07:34:17 PM »
I'm sorry I firmly grasped the wrong end of the stick 
Andy

I'm cool Andy. :beer:
From the den of The Artful Bodger

Offline Mike Cole

  • Jr. Member
  • **
  • Posts: 45
  • Country: 00
  • Wallasey Wirral
Re: Income earning capacity of a home shop...
« Reply #12 on: October 28, 2011, 08:54:05 AM »
Anthony
Any pointers you got for making money out off the home shop or how to pay less(legal) tax is always of intrest, and thanks John for raising the topic

Mike