Can I put a garden office through my limited company?

Can I put a garden office through my limited company?

With the shift to work from home over the last year more and more people are discovering the benefits of losing the commute.  However, on the flip side, having your work space in your home can also mean it’s harder to switch off, and blur the lines between work and home life.

There are a number of solutions, but we’re finding more and more clients are looking into the feasibility of a garden office – and more importantly can it be put through the business?

It’s a yes from me!

Well kind of!  Whilst your company can pay for the office, not all of these costs are allowable expenses for tax relief.

The actual cost of the structure – the build and materials – can go through the company and be an asset on your balance sheet.  However these are not allowable expenses for corporation tax relief.  (It’s still the cheapest way of doing it though as you don’t need the dividends to pay for it personally!).

But, if you’re VAT registered you can actually claim the VAT back on the structure (I know – doesn’t quite make sense, but hey ho, we have to go with what the lovely people from HMRC say!).

What about furnishing and running costs?

All running costs (light, heat, power, water on a separate mains to the house), telephone, internet, furniture, decoration, repairs etc are allowable for tax as usual, as well as being able to claim back the VAT on these if you’re VAT registered.

Just make sure all the receipts are in the name of the company and have the full VAT breakdown as usual – see our blog on what is a VAT receipt for more details.

So there you have it.  A garden office could be just the solution you’re looking for to give you that flexibility of working from home, but with the separation required for a work life balance.

If you’d like to explore this further, and understand other ways of how PPF can help you achieve that work life balance you’re looking for, pop over to our Work With Us page, complete the quick questionnaire and book a discovery call.