Expense

[xenomorph]

So if I were to purchase a coffee machine for giving myself as employee of my company coffee to keep me working at full capacity to give clients my best work would it be a red flag and how likely would a hmrc investigation take place? I mean I would not do things like expense electricity or mortgage payments so wont go that far haha

[edison]

Is it 'necessary and wholly incurred as part of the running of your business' as per HMRC guidelines? Seems doubtful.

[malvolio]

You might struggle to prove it has no element of personal use...

[NotAllThere]

Just do it. If it's disallowed, take the hit. You're talking a few quid. Who frankly cares? But the reason you give shows that it's BS.

I adopted a different approach. The paper work involved means I'd rather pay for it myself.

You provide coffee for all employees. End of. Nothing more to say. I seem to recall - and it might have changed - that free coffee is allowable, so long as everyone in the company gets it. If it's only for directors, for example, then it's a BIK.

[hobnob]

There was a similar discussion a few years ago:
Expensive Coffee Machine as Expense - Contractor UK Bulletin Board
Short version: if you buy something cheap which lives in a garden office, that's ok. If you buy something expensive and keep it in your kitchen, you'll get into trouble.

See also:
EIM21863 - Particular benefits: trivial benefits - examples (to 5 April 2016) - HMRC internal manual - GOV.UK
"An employer may provide its employees with access in the workplace to tea, coffee or water from a cooling dispenser."

However, I'd suggest asking your accountant for their opinion.

Also, just to nitpick, you described yourself "as employee of my company". Do you actually have an employment contract? I.e. are you actually an employee or just a director? I don't think it will affect the coffee machine question, but it's an important distinction to be aware of.

[xenomorph]

There was a similar discussion a few years ago:
Expensive Coffee Machine as Expense - Contractor UK Bulletin Board
Short version: if you buy something cheap which lives in a garden office, that's ok. If you buy something expensive and keep it in your kitchen, you'll get into trouble.

See also:
EIM21863 - Particular benefits: trivial benefits - examples (to 5 April 2016) - HMRC internal manual - GOV.UK
"An employer may provide its employees with access in the workplace to tea, coffee or water from a cooling dispenser."

However, I'd suggest asking your accountant for their opinion.

Also, just to nitpick, you described yourself "as employee of my company". Do you actually have an employment contract? I.e. are you actually an employee or just a director? I don't think it will affect the coffee machine question, but it's an important distinction to be aware of.

I live in a flat so no office space.
I work in my open plan kitchen/living area as its 1 bed property.

[northernladuk]

Wow, daft questions about expenses, bonuses and not knowing if you are an employee of your own LTD... This is like turning the forum back 15 years to the good old days.

But either way.. poor trolling... Push the button mods.

[b0redom]

As others have said, pretty sure this is trolling, but my personal acid test is, “Can I argue that this is a
a necessary business expense with a straight face if the tax man comes calling?”

I want a nice coffee machine for my flat doesn’t even come close to meeting that test.