Garden offices: tax implications for the employer

With the rise in sales of garden offices there has been a noticeable increase in expert advice from accountants and tax specialists about the various financial implications of becoming a shedworker. The latest comes from financial experts Larking Gowen and here's a snippet:

Firstly, in providing the pod, and in relation to the associated benefit charge, there will be a Class 1A National Insurance contribution charge (13.8%) for the employer. In purchasing a pod, the company would incur a capital expense. Can it make a capital allowances claim to obtain tax relief rather than getting a deduction against trading profits? Unfortunately, HMRC don’t accept mobile prefabricated structures as being within the scope of plant and machinery allowances. Whilst there is now a separate structures and building allowance, this requires the company to have an interest in the underlying land, again causing any claim to fail.

Well worth a browse. 

Image courtesy Plankbridge

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