Friday, October 09, 2020

Tax implications of a garden office

The issue of how your financial affairs are affected by buying a garden office is not a cut and dried one and over the years we have posted regularly about the tax implications of shedworking. The first thing to say is that you should always discuss these things with your financial adviser before taking action since there are different interpretations. However, it's always good to hear from an expert. 

Jon Dudgeon from blusky is the latest to put pen to paper on the subject, taking a swift but informed look at topics such as corporation tax, income tax and capital gains. Here is a snippet of his thoughts on VAT:

This is where you need to need to tread carefully.If your company is VAT registered you will be able to claim back the VAT on all your costs (again make sure the invoices are made out to your company).  That sounds simple enough until you consider personal use.  Surely there will some!! The office is in your gardenisn’t it? If you will be using the garden office for both personal and business use, you will need to consider very seriously making an adjustment for the personal use element on your VAT reclaim.

Click the link above for the full article.

Image courtesy Smart.


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