Garden Shed (office)

JJH1969

My client has built a home office in the garden (£20k) and wants to claim CAs - there seems to be a school of thought that allowances can be claimed and a school of thought that they cant - what is the concensus? Also does the bill need to be in the Business name to reclaim the VAT?

MarieNoelle

Is the business a sole trader or ltd co?

JJH1969

Ltd company

MarieNoelle

It may be more tax efficient for the owner to have a licence agreement with the ltd co, whereby the owner charges rent to the company for the use of the office. A non exclusive licence (i.e. allow for some non business use in the evenings or at the weekend) would eliminate the risk of CGT when the owner sells the house and outbuilding.

RyanMIP

This is a grey area I had exactly this situation with a client last year. I claimed all of the building costs as the company paid for them therefore it's a company expense.

Ryan

MarieNoelle

RyanMIP said:

This is a grey area I had exactly this situation with a client last year. I claimed all of the building costs as the company paid for them therefore it's a company expense.

Ryan

Really?

RyanMIP

MarieNoelle said:

RyanMIP said:

This is a grey area I had exactly this situation with a client last year. I claimed all of the building costs as the company paid for them therefore it's a company expense.

Ryan

Really?

??? Yes

RyanMIP

mrme89 said:

Then you've given it incorrect tax treatment, Ryan.

Hopefully you will have adequate PI insurance.

Yes I have PII, John. And how come you know so much about my client??

Ryan