Can my limited company pay for my garden office?

This is one of the most popular questions we field at Shedworking HQ (and one of the most common search terms bringing people to the site). As with all things, there are differences of opionion about how much of what you spend on your garden office you can claim back, so it's always good to gather more expert advice.

The most recent comes from Effective Accounting's founder Nicola Sorrell who looks at a range of issues such as VAT benefits, captial gains tax, and garden offices used for private business. Here's a snippet in answer to the question could it be tax efficient to pay for my garden office through my limited compay?

While you can certainly pay for your garden office through your limited company, as with all tax-based queries, there are lots of particulars to take into consideration, especially regarding tax relief.

As a garden office is normally classed as a structure, it is not usually possible to claim tax relief on one – including planning, building and installation – even if it is mobile. However, tax relief can be obtained through capital allowances on any furniture or equipment installed into the building such as desks and shelving units.

Despite thermal insulation, certain electrical wiring and plumbing technically being included within the structure of the building, you can actually claim a capital allowance on these. Running costs for the outbuilding, so electricity, gas and water can be claimed as business expenses. This also applies to repairs.

Nicola rightly points out that this is general advice and, as we always say, you need to talk to a tax advisor about your particular circumstances.

Image courtesy Garden Affairs -------------------------------------------------------------------------------
Tuesday posts are sponsored by Garden Spaces, suppliers of contemporary garden buildings, offices, gyms and studios, many of which do not require planning