Garden Shed (office)

JJH1969JJH1969 Feels At HomeStaffordshireRegistered Posts: 110
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?

Answers

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,452
    Is the business a sole trader or ltd co?
  • JJH1969JJH1969 Feels At Home StaffordshireRegistered Posts: 110
    Ltd company
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,452
    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.
    traceygford
  • RyanMIPRyanMIP LincolnshireRegistered Posts: 50
    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
    mrme89
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,452
    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?
  • RyanMIPRyanMIP LincolnshireRegistered Posts: 50

    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
  • RyanMIPRyanMIP LincolnshireRegistered Posts: 50
    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
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