Self Storage - expense?

[Alan @ BroomeAffinity]

[QUOTE=Little'Old Me;797942]

If you are a sole trader you are correct. But if the expense is a expense of a Limited company then it often needs to be "necessary" because the decision is made by an employee. If you follow all three, you are less likely to have a problem, as some Ltd company expenditure is not allowable - because the expenditure is for "non trading" reasons, they are not allowable, as a trading expense because it is not "necessary" for trading purposes.....

I disagree. A limited company is subject to the same rules as a sole trader or partnership. Bob Jones has covered this in another thread - "Are books tax deductible?" or something similar and I am inclined to agree with Bob's stance.

[Little'Old Me]

[QUOTE=Just1morethen;797729]

Yes you could - if you can prove that is your intention when you made the booking is to check out the latest technologies and it was "wholly, necessary and exclusively" for you business.
QUOTE]

Am I not right in saying that a business expenses need to be "necessary". This only applies to employment expenses.

If you are a sole trader you are correct. But if the expense is a expense of a Limited company then it often needs to be "necessary" because the decision is made by an employee. If you follow all three, you are less likely to have a problem, as some Ltd company expenditure is not allowable - because the expenditure is for "non trading" reasons, they are not allowable, as a trading expense because it is not "necessary" for trading purposes.....

[Alan @ BroomeAffinity]

[QUOTE=Little'Old Me;797709]Yes you could - if you can prove that is your intention when you made the booking is to check out the latest technologies and it was "wholly, necessary and exclusively" for you business.
QUOTE]

Am I not right in saying that a business expenses need to be "necessary". This only applies to employment expenses.

[Little'Old Me]

I think I need to go to Las Vegas with the sole intention of it being a business trip to check out the latest technologies

Yes you could - if you can prove that is your intention when you made the booking is to check out the latest technologies and it was "wholly, necessary and exclusively" for you business.

If then decided to take an extra day or too for personal reasons its not a problem.........

Where you'd have a problem is if you booked a holiday first, and then tried to turn it into a business trip by later paying to attend a conference. Then your original intention is to have a holiday not have a business trip, so the whole thing (except the entry fee to the conference) would not be allowable.

[centurian]

The "wholly and exclusively" rule is really to do with original intention, not the final outcome.

I think I need to go to Las Vegas with the sole intention of it being a business trip to check out the latest technologies

[Little'Old Me]

is the

Then its not wholly and exclusively for business is it? So no, you shouldnt claim it as a business expense.

The "wholly and exclusively" rule is really to do with original intention, not the final outcome.

So if you intended to have an expense that is "wholly and exclusively" (can I also add the word necessary, as this is a Ltd company not a sole trader) then you can claim it, even if you, afterwards decide to have some private element as long as the private element is not be "material"....... From time to time if the HMRC question the validity of the expense (especially when negotiating a dispensation), I will point out the "any personal use is not material" and provided I can show this, they are happy to allow it.

I have a 2nd BT line which I claim 100% of the cost because my business Fax is attached to it, and I rarely use it for personal use, and therefore my personal use is not material...... My broadband also attached is also 100% business use. I may use it occasionally to surf the net for personal use, but again this is not material because I have 3 business VOIP phones that also use it, have a secure internet based accounting package available for my and clients use, I do the bulk of my businesses using the internet etc.....

[Gonzo]

Does anyone know if I can legitmatly claim the costs of a small self storage unit as a business expense (£45 a month)?

The majority will be business stuff, with the odd box or two of personal affects.......

If you are using a Limited Company then your company can spend its money on whatever the Director(s) think appropriate. HMRC may challenge those expenses during an inspection, but if you have a reason for using it then that's fine. If your company has any "stuff" and no premises then I am sure that you would be able to come up with a reason for not keeping that stuff at home.

If you are using an Umbrella company then they will probably have their own rules about what you can and cannot claim, afterall you would be an employee of theirs. Years ago, I worked at Tesco for a while and although I never tried it, I don't think that they would have let me put through self-storage space on an expense claim.

[ASB]

Then its not wholly and exclusively for business is it? So no, you shouldnt claim it as a business expense.

Quite right. But if the business rents it and the individual happens to put a couple of things in there and repays an approrpiate part of the rent then that is arguably different.

[BolshieBastard]

Does anyone know if I can legitmatly claim the costs of a small self storage unit as a business expense (£45 a month)?

The majority will be business stuff, with the odd box or two of personal affects.......

Then its not wholly and exclusively for business is it? So no, you shouldnt claim it as a business expense.

[centurian]

Claim it and make sure you can demonstrate it's not a scam if they investigate?

Yeah, it's not like they're going to raid the place and examine every item. Take a few pictures of the storage space with all the business equipment loaded in - that should keep HMRC happy.

[d000hg]

Claim it and make sure you can demonstrate it's not a scam if they investigate?

[~Craig~]

Does anyone know if I can legitmatly claim the costs of a small self storage unit as a business expense (£45 a month)?

The majority will be business stuff, with the odd box or two of personal affects.......