Question about expenses

[expat]

HI, Sorry if I posted in the wrong part of the forum.
The answers to some responses, the office which I want to build is just going to be extention to one of my residential properties. It is technically converting existing conservatory into permanent room. but the builder is my friend so I will ask him to write whatever receipt I need.
I just wanted to know if this is legitimate, and if I shall keep the budget to some level.
I am not going to build a mantion. just couple of rooms, the cost shall be low.

This is obviously some new meaning of "legitimate" that I was previously unaware of.

[cojak]

This is obviously some new meaning of "legitimate" that I was previously unaware of.

legitimate = 'Will I get caught?'

[Platypus]

Of course it's legitimate. You can do what you damn well please.

Whether you can offset the expense against CT, or whether it will be be treated as personal income, is a different question. One that I feel you already know the answer to.

[Mincepie]

How many bedrooms will the new office have?

[stek]

HI, Sorry if I posted in the wrong part of the forum.
The answers to some responses, the office which I want to build is just going to be extention to one of my residential properties. It is technically converting existing conservatory into permanent room. but the builder is my friend so I will ask him to write whatever receipt I need.
I just wanted to know if this is legitimate, and if I shall keep the budget to some level.
I am not going to build a mantion. just couple of rooms, the cost shall be low.

Dodgy beyond belief, hope you both get shafted by Hector.......

[ASB]

Hi, Have a limited company and doing IT consultancy me dorector and one secretary who i employ . Have a friend who runs a building company, wanted to commission some work for me, thinking of putting it on expenses as building an office) , wanted to spend about 20 K maybe 30k for this. Will be paying to his business and getting invoice
Do you think it is legit?
Any issues could be associated with this.?

Well yes. It's kind of legit.....

As a director it is up to you what you spend the company funds on. Coke, hookers, extensions etc etc are all expenditure which you can legitimately authorise.

So, in that respect no real problem at all.

But beyond that it gets a little tricky.

Firstly any building work is not an expense. It's an asset purchase, end of.

So no deduction for CT. But there is the possibility of capital allowances.

Provided of course it was wholly necessarily etc. Only you know the answer to that. I suspect your view is the same as mine.

Now, if there is benefit to you - and I imagine you know he answer to that too - then you will be getting use of an asset placed at your disposal. There is a regime for that. It costs you lots of personal tax.

So, in summary what you want to do. Provided you are open and honest about it is in fact legit.

You may not like the personal taxation consequences that flow from it though. Not least of which would be the potential loss of your PPR CGT exemption.

[shtek]

thanks

Thanks ASB for comprehensive answer, I am not sure this will be sop attractive option if I incur tax.
My plan was to put it as a business expense, ( office construction) obtain the necessary invoice and not incur tax. So you saying there is no way around it ?

[northernladuk]

Just ban this bloody awful sockie. If it's not a sockie just ban it anyway to be sure.

[DimPrawn]

Contractor Doctor: Can I claim expenses for building an office in my garden?

Short answer, it's a minefield of tax, business rates and BIK implications.

[shtek]

Contractor Doctor: Can I claim expenses for building an office in my garden?

Short answer, it's a minefield of tax, business rates and BIK implications.

Would you than say ,: Dont do it ?