Aircon for 100% dedicated home office

[Finance Contractor]

Quite a lot as it happens. There is no definitive list of equipment that can be bought for a company, so one is left to interpret the "wholly, elusively, and necessarily" test. Everyone will have their own interpretation as to what could be defensible if their decision was to be tested.

You have stated your interpretation: "no".

I have stated mine: "maybe".

Others have stated theirs: "yes".

Such is life.

The equipment isn’t for the company. It is for the employee as the company does not own the premises the equipment is used for.

There needs to be no interpretation and HMRC not providing a list of each and every piece of equipment invented is not a cop out for claiming non allowable expenses.

HMRC does not need to provide a list of every piece of equipment as it has provided the criteria for claim. Is it wholly and exclusively for business use? No, because the equipment is not on business premises and forms part of an individuals private residence. Is it necessary - no, because it does not create an economic benefit to the company.

It is very clear cut. Not sure why you feel your opinion over rides HMRC’s clear guidance on what is and isn’t allowable.

[BR14]

just.
open.
the.
bloody.
window.

[wattaj]

It is very clear cut. Not sure why you feel your opinion over rides HMRC’s clear guidance on what is and isn’t allowable.

It really isn't, but I'm happy for you to live your life as though it is.

[Finance Contractor]

It really isn't, but I'm happy for you to live your life as though it is.

Oh so no actual basis for your view that it is allowable other than people on an internet forum are saying it is so you have to resort to the above rely.

No problem, I am indeed happy to live my life this way and expenses going through my company are watertight and 100% allowable so can’t really complain.

[wattaj]

Oh so no actual basis for your view that it is allowable other than people on an internet forum are saying it is so you have to resort to the above rely.

Oh, there is a basis for my position: it is my interpretation of the guidance that has been provided by HMRC. It's similar to your position in many ways (i.e. it's a just an opinion.)

No problem, I am indeed happy to live my life this way and expenses going through my company are watertight and 100% allowable so can’t really complain.

Good for you.

[Finance Contractor]

Oh, there is a basis for my position: it is my interpretation of the guidance that has been provided by HMRC. It's similar to your position in many ways (i.e. it's a just an opinion.)



Good for you.

Employee expenses require no interpretation. HMRC have set out the three criteria for the expense in statute and have defined exactly what wholly, exclusively and necessarily means. There is also case law available that supports HMRC’s stance on this.

There is an abundance of evidence out there in both statute and case law that an expense that was of the nature of an air conditioning unit is not allowable. Your interpretation, or mine for that matter, makes no difference as an air conditioning unit in the OP’s circumstances fails the test in many levels.

[wattaj]

Employee expenses require no interpretation. HMRC have set out the three criteria for the expense in statute and have defined exactly what wholly, exclusively and necessarily means. There is also case law available that supports HMRC’s stance on this.

There is an abundance of evidence out there in both statute and case law that an expense that was of the nature of an air conditioning unit is not allowable. Your interpretation, or mine for that matter, makes no difference as an air conditioning unit in the OP’s circumstances fails the test in many levels.

It really doesn't.

[Finance Contractor]

It really doesn't.

It really doesn’t what?

[wattaj]

It really doesn’t what?

Your interpretation, or mine for that matter, makes no difference as an air conditioning unit in the OP’s circumstances fails the test in many levels.

HTH.

[TheCyclingProgrammer]

Just because you would claim doesn’t mean it is an allowable expense or correct to claim. No need to take my word for it. HMRC can be contacted by phone if you want to check with them. But I can tell you their answer in advance - the air conditioning unit does not meet the definition of wholly and exclusively for business because it is operated in an individual’s home. The presumption has been made in this thread that if the unit is based solely in the room that is the home office - that fulfils the requirement of wholly for business use. It does not as the room is not part of the business - it is a part of the individual employee’s private residence.

On that basis, any piece of office furniture at home would not meet the test.

You're wrong though, because there is a more specific rule that overrides the general "wholly, exclusively and necessarily" test. Employers are allowed to supply equipment for their employees to use at home so long as that it relates to doing their job and any personal use of such equipment is not deemed significant.

Expenses and benefits: homeworking - GOV.UK

Homeworking expenses include:
* equipment, services or supplies you provide to employees who work from home (for example computers, office furniture, internet access, pens and paper)
* additional household expenses, such as gas or electricity charges, for employees who need to work from home

The second point above is covered by the use of home claim, normally taken as the fixed amount per week.

The first point allows an employer to supply whatever equipment is deemed necessary for an employee to do their job so long as any personal use is not significant. What is or isn't deemed essential for an employee to do their job might be a matter of opinion (not fact) and whether or not there was an intention to provide some kind of benefit is also open to interpretation, but the fact remains that S316 allows an employer to supply equipment at their employee's home.

All outlined in detail here:
EIM21611 - Employment Income Manual - HMRC internal manual - GOV.UK

You should try reading the guidance properly in future.