Aircon for 100% dedicated home office

[Finance Contractor]

I would love to see the rules determining this.

Claim tax relief for your job expenses: Working at home - GOV.UK

Voluntarily working from home changes the rules for claiming significantly.

[Finance Contractor]

You may not have noticed, but I've been trolling you for my amusement this evening. I knew that you were incorrect in your interpretation, but it was more fun to let you wrap yourself up in yourself than to correct you.

So you never had anything of substance to add. Thanks for confirming that. I bet your other half didn’t roll her eyes while you trolled me because she doesn’t exist

[TheCyclingProgrammer]

Claim tax relief for your job expenses: Working at home - GOV.UK

Voluntarily working from home changes the rules for claiming significantly.

Dig deeper.

There is a distinction between additional household costs incurred as a result of working from home and equipment provided by an employer to their employee for use at home, as I stated originally (which is why your original post was bollocks).

The deduction for additional costs of working from home (e.g. the £6/month) is allowable under S336 where an employee is *required* to work from home.

This deduction is not permitted where an employee chooses to work from home voluntarily but a payment of £6/month (or direct reimbursements of additional costs) can still be made by the employer under a separate rule, S316A:

EIM32825 - Employment Income Manual - HMRC internal manual - GOV.UK

Once again, neither of these apply to the provision of equipment for use by an employee at home which are made again under a separate section, S316(2) and (3), linked to previously.

I thought you were done? Hopefully you are.

[Finance Contractor]

Dig deeper.

There is a distinction between additional household costs incurred as a result of working from home and equipment provided by an employer to their employee for use at home, as I stated originally (which is why your original post was bollocks).

The deduction for additional costs of working from home (e.g. the £6/month) is allowable under S336 where an employee is *required* to work from home.

This deduction is not permitted where an employee chooses to work from home voluntarily but a payment of £6/month (or direct reimbursements of additional costs) can still be made by the employer under a separate rule, S316A:

EIM32825 - Employment Income Manual - HMRC internal manual - GOV.UK

Once again, neither of these apply to the provision of equipment for use by an employee at home which are made again under a separate section, S316(2) and (3), linked to previously.

I thought you were done? Hopefully you are.

S316(2) and S316(3) relate to the personal element use of equipment. That would not apply in this case as the exclusively, wholly and necessarily rule has not been met for the use of the equipment. The issue of personal use does not apply as the company is not issuing this equipment wholly, exclusively and necessarily for business use.

But anyway carry on insulting me if it makes you feel better. The fact that you cannot see the distinction between the blanket claim and how that impacts the ability of the contractor to claim outside of those equipment items explicitly listed by HMRC as allowable speaks volumes for your approach to tax.

PS: Thanks for the following up your throwaway initial comment with the lengthy attempt at a justification. Keep digging deeper and next time read up before you drop in tax statute as s316(2) and s316(3) had nothing whatsoever to do with your explanation of them.

[TheCyclingProgrammer]

S316(2) and S316(3) relate to the personal element use of equipment. That would not apply in this case as the exclusively, wholly and necessarily rule has not been met for the use of the equipment. The issue of personal use does not apply as the company is not issuing this equipment wholly, exclusively and necessarily for business use.

Whether or not a company is issuing equipment for an employee to use under S316 is a matter of judgement, not a matter of fact. If a company decides that it's employee would be more comfortable working from home with a small portable air-con unit in the Summer, then that would be a perfectly legitimate application of S316 as the sole purpose is to enable the employee to do the duties of their employment (S316(4)) and so long as any personal use of the equipment was insignificant as per S316(2) and (3) as already highlighted.

I thought you got bored several posts back? Anyway, I am bored of you now. People can read the legislation and HMRC manual and make their own mind up based on their own circumstances. You can carry on posting rubbish if you want.

[Finance Contractor]

Whether or not a company is issuing equipment for an employee to use under S316 is a matter of judgement, not a matter of fact. If a company decides that it's employee would be more comfortable working from home with a small portable air-con unit in the Summer, then that would be a perfectly legitimate application of S316 as the sole purpose is to enable the employee to do the duties of their employment (S316(4)) and so long as any personal use of the equipment was insignificant as per S316(2) and (3) as already highlighted.

I thought you got bored several posts back? Anyway, I am bored of you now. People can read the legislation and HMRC manual and make their own mind up based on their own circumstances. You can carry on posting rubbish if you want.

Off course you would be bored. You have insulted me and told me I am wrong however have provided no actual evidence that I was wrong. You are free to believe whatever you want but clearly you misunderstand the issue, as if you did have any actual understanding, you wouldn’t have provided s316(2) and s316(3) as an explanation for your point.

Your own links contradict the very point you are making yet you carry on because all you have managed to Google the issue and posted links that don’t actually support your own point.

[WordIsBond]

It appears I and my accountant have both been wrong. My company has purchased computers, a desk, and a chair for use in my home office. Since this equipment / furniture is used in my personal home rather than in premises owned by the company, apparently these are not legitimate business expenses? Ok....

The a/c unit is more likely to be challenged by HMRC than some other things. It would be more clear if you have a 6 month WFH contract over the summer and you took out a 6 month lease on an a/c unit. That would clearly be legitimate and for the purposes of facilitating productive home-working.

Purchasing it puts it into a more questionable area because it's going to be harder to make the case that it's exclusively a business purchase. The room in which it is used is presumably not going to be 100% for business (because of the cap gains on selling your house issue) and the fact that it is still going to be there when you aren't working from home, and presumably you'll still use it, makes it a harder sell if HMRC comes asking. For the amount of tax you save, I probably wouldn't take the risk, personally.

[Old Greg]

It appears I and my accountant have both been wrong. My company has purchased computers, a desk, and a chair for use in my home office. Since this equipment / furniture is used in my personal home rather than in premises owned by the company, apparently these are not legitimate business expenses? Ok....

The a/c unit is more likely to be challenged by HMRC than some other things. It would be more clear if you have a 6 month WFH contract over the summer and you took out a 6 month lease on an a/c unit. That would clearly be legitimate and for the purposes of facilitating productive home-working.

Purchasing it puts it into a more questionable area because it's going to be harder to make the case that it's exclusively a business purchase. The room in which it is used is presumably not going to be 100% for business (because of the cap gains on selling your house issue) and the fact that it is still going to be there when you aren't working from home, and presumably you'll still use it, makes it a harder sell if HMRC comes asking. For the amount of tax you save, I probably wouldn't take the risk, personally.

I agree that renting would be less risky.

[wattaj]

...People can read the legislation and HMRC manual and make their own mind up based on their own circumstances...

Thanks. This is where I came into this discussion and I've seen nothing to change my opinion. Others, like our esteemed financial contractor can hide under the bedclothes if they so wish, but they're missing out on a great deal of tax planning if they choose to do so.

[Paralytic]

Anyone want to buy a a/c unit? Recently purchased but no longer required.