Reply to: Flat rate VAT scheme wanting to purchase >2K of Office Equipment

[northernladuk]

Exclusively for business use? I only ask because I'd want to charge more than £3 per week for "use of home" if I could argue the entire office in my house was exclusively for work use.

And there was my thought... as soon as you get a contract out of the house, the office use dies and wouldnt be solely business...

Guys, you have to apply a bit of common sense here and look at the bigger picture. A couple of points to consider. Firstly you run a business, you need an office to run it from. Scooby's comment would suggest that this client site is main place of work so he should not be claiming expenses and I am sure you don't want to go down that route. It is a client site NOT your office. You should not be running your business from client site so there is always a need for a home office. Scooby's train of thought is going to make him fail any new 'proof of business' test unless he starts thinking like one.

Secondly it will be extremely difficult to argue that an office at home is exclusively for work use. Your PC, printer etc is in there, there is undoubtedly going to be some occasional use which is reflected in the £4 per week (It's gone up .. read this). I don't doubt there are situations you may want to argue exclusively but in 99.9% of cases that won't apply. If you feel you want to then go for it and good luck. They seem to be happy for you to claim furniture and equipment for business use with some personal use so most of it is covered.

Gotta think about this as a business rather than indivdual little tax scams.

[scooby]

Exclusively for business use? I only ask because I'd want to charge more than £3 per week for "use of home" if I could argue the entire office in my house was exclusively for work use.

And there was my thought... as soon as you get a contract out of the house, the office use dies and wouldnt be solely business...

[Notascooby]

Do you think about anything before you post it? You still have a home office whatever time you spend in it.

Exclusively for business use? I only ask because I'd want to charge more than £3 per week for "use of home" if I could argue the entire office in my house was exclusively for work use.

[Mr.Whippy]

<sigh>

Carat Executive Desk

Humanscale Freedom Leather Executive Chair Office Chairs UK

There is 2.6K.....

Wow. 2.6k for a desk and chair. I'd want a personal assistant thrown in for that much!

But regardless of cost, I'd definitely claim any desk/chair bought for the home office, don't see why you wouldn't. As long as it is a desk/chair and not a kitchen table. Seriously do people do that?!?

[northernladuk]

This is a good point. This current contract see me based from my home 90%, my last one did too. However, what happens if I go and purchase all new office furniture for the new house later this year and 6mths later I change client and they want me around their office?

Do you think about anything before you post it? You still have a home office whatever time you spend in it.

[northernladuk]

But seriously, why would you?? It aint a investment... you can look just as good paying at most half the price.

You asked the question.

[TheFaQQer]

This is a good point. This current contract see me based from my home 90%, my last one did too. However, what happens if I go and purchase all new office furniture for the new house later this year and 6mths later I change client and they want me around their office?

I'd say it's irrelevant, assuming that it's furniture for a dedicated office.

Chances of me working at home (current gig excepted) are slim, but I have an office at home which the company has paid for the desks, filing cabinets, shredder, PC, scanner, printer etc. etc.

[scooby]

If this is going to be at your house rather than a dedicated office then I'd be wary of claiming this at all - normally I'm gun-ho about these kind of things and have heard of people buying new kitchen tables and chairs etc as "office furniture".

I don't think that would hold up to scrutiny.

Also as Mal pointed out to me in a thread about buying computers, don't think because you've not hit £2K that you're making some kind of loss.

i.e. if you were to spend £1850 on company assets, you're not better off by spending an extra £151 to reclaim the VAT as you'd expense the full £1850 against tax, where as if you reclaim the VAT you'd only expense the outgoing - VAT - so the difference is about £50 or something on £2K (awaits a friendly accountant to supply the correct technical explanation and figures).

In short - if its for the house, unless you're sure you can show that you use that "office" for the majority of time for business e.g. you work from home, then I'd stay away from claiming the furniture (no doubt others will disagree). if you do decide to buy a new kitchen table - I mean office furniture, then don't get hung up about the £2K threshold when on the FRS unless you really want a new oak table and leather office chair.

This is a good point. This current contract see me based from my home 90%, my last one did too. However, what happens if I go and purchase all new office furniture for the new house later this year and 6mths later I change client and they want me around their office?

[Notascooby]

If this is going to be at your house rather than a dedicated office then I'd be wary of claiming this at all - normally I'm gun-ho about these kind of things and have heard of people buying new kitchen tables and chairs etc as "office furniture".

I don't think that would hold up to scrutiny.

Also as Mal pointed out to me in a thread about buying computers, don't think because you've not hit £2K that you're making some kind of loss.

i.e. if you were to spend £1850 on company assets, you're not better off by spending an extra £151 to reclaim the VAT as you'd expense the full £1850 against tax, where as if you reclaim the VAT you'd only expense the outgoing - VAT - so the difference is about £50 or something on £2K (awaits a friendly accountant to supply the correct technical explanation and figures).

In short - if its for the house, unless you're sure you can show that you use that "office" for the majority of time for business e.g. you work from home, then I'd stay away from claiming the furniture (no doubt others will disagree). if you do decide to buy a new kitchen table - I mean office furniture, then don't get hung up about the £2K threshold when on the FRS unless you really want a new oak table and leather office chair.

[scooby]

Actually I just had a quick look and it probably is possible. Staples sell laptops too and you only need to get to £1600 (not including VAT) to do this.

Fair point, buy a Mac, more than half way there then!!

[Antman]

<sigh>

Carat Executive Desk

Humanscale Freedom Leather Executive Chair Office Chairs UK

There is 2.6K.....

LOL, I'm more at the argos end of the market!

[scooby]

<sigh>

Carat Executive Desk

Humanscale Freedom Leather Executive Chair Office Chairs UK

There is 2.6K.....

But seriously, why would you?? It aint a investment... you can look just as good paying at most half the price.

[Antman]

Actually I just had a quick look and it probably is possible. Staples sell laptops too and you only need to get to £1600 (not including VAT) to do this.

[northernladuk]

Is it possible to spend 2k on office equipment if you're not buying hardware??

<sigh>

Carat Executive Desk

Humanscale Freedom Leather Executive Chair Office Chairs UK

There is 2.6K.....

[Antman]

Is it possible to spend 2k on office equipment if you're not buying hardware??

Yuuur, probably not.