Reply to: Home office expenses

[northernladuk]

That, along with admitting that he's had a lot of moving/renovation-related expenses lately, draining his savings.
http://forums.contractoruk.com/gener...ml#post1671126

Using warchest as a savings account, 4 months left and working at Barclays and trying to rip the company off already? I smell a 'Spent the CT and VAT' thread not so far away.

[formant]

i wonder if this might have something to do with the OP buying a house in the last month or two and doing his house up as per his Floor 2 Go thread. He also talking about putting woodfloor and tv's in his office then admitted his office is a different room.... Kinda clears up what he is really trying to do here.

That, along with admitting that he's had a lot of moving/renovation-related expenses lately, draining his savings.
http://forums.contractoruk.com/gener...ml#post1671126

[northernladuk]

Do you actually work from home most of the time? I got the impression you were on site?

i wonder if this might have something to do with the OP buying a house in the last month or two and doing his house up as per his Floor 2 Go thread. He also talking about putting woodfloor and tv's in his office then admitted his office is a different room.... Kinda clears up what he is really trying to do here.

[mudskipper]

Hi all,

been searching the forum for this but couldn't find one within 5 mins so I thought I'd ask the question again.

Can I redecorate a room in my house that I use for work at the expense of the business? That includes wooden flooring, TV, monitor, office chair, office furniture etc.

I can't see the point of charging my business rent/mortgage for this? Or is there some benefit I can derive from it?

Much appreciated

Do you actually work from home most of the time? I got the impression you were on site?

[mudskipper]

I agree. I work pretty much exclusively from home aside from occasional brief visits at the ClientCo office. I'm not claiming the £4/week. My 'office' is a desk in my living room. Most of the equipment used for the job was sent to me by the client (2 laptops, 3 screens, keyboards, etc). I'm not sure what I'd be claiming those £4 for. My printer (yet to be used for this contract)? The desk-space that the clients hardware is taking up? I'd feel like I was taking the p-ss if I did.

You use electricity, heating etc by working from home. To me, if you are genuinely working from home some or most of the time, you should claim. Personally, I don't claim for weeks when I'm on holiday etc. but I do claim the rest of the time.

[Jessica@WhiteFieldTax]

One other thing. I think I'm right in saying that dedicating a room in your house EXCLUSIVELY for business use is always a bad idea. I've always been told any room has pretty much got to be dual use.

You can get into all sorts of tulipe with having to pay business rates, capital gains if you sell the house etc. I'm not sure but the council can even stop you using it for business if they get arsey.

I remember seeing a story where someone was running a hairdressing salon at home. Got a conservatory, got all those fixed sinks and hairdryer things build. Of course, neighbours could see this and grassed them up.

Then council turned up to take a look. Major hassle then.

Yep. Some local councils even get arsy about business vans parked on driveways...

[psychocandy]

One other thing. I think I'm right in saying that dedicating a room in your house EXCLUSIVELY for business use is always a bad idea. I've always been told any room has pretty much got to be dual use.

You can get into all sorts of tulipe with having to pay business rates, capital gains if you sell the house etc. I'm not sure but the council can even stop you using it for business if they get arsey.

I remember seeing a story where someone was running a hairdressing salon at home. Got a conservatory, got all those fixed sinks and hairdryer things build. Of course, neighbours could see this and grassed them up.

Then council turned up to take a look. Major hassle then.

[LisaContractorUmbrella]

One final question:

If it were in a separate premises then it would be classified entirely as an expense? e.g. if you limited company had an office in a building somewhere?

Again it would be a cost to the company - so as a premises expense in the profit and loss via the purchase ledger or cash book rather than an expense such as travel or subsistence

[formant]

I'm not sure why you'd need to redecorate a room to turn it into an office. Surely adding the essential bits of office furniture should do? Anything else (like the 'wooden flooring' you mentioned) has nothing to do with your work.

I see why you'd want a swish office, but I am almost amused that you think the renovation could easily be expensed.

[Pondlife]

My office is a separate room. You can use TV for connecting to computer, presentations, bloomberg etc. Also love having a big 42" screen when using computer....

Also - the fact I am asking the question shows I have a good attitude towards finances....

Will you be doing many presentations on this 42" TV?

Can and Will are different.

Put it another way. The client site I am on now has a big TV in reception showing corporate vids $ welcome to site messages. It has a rest area with coffee machines and sofas. It has a massive kitchen next to the canteen with all sorts of ovens and fridges.

For them, these are 100% expenses. If I were to buy the same at home they wouldn't be.

[northernladuk]

One final question:

If it were in a separate premises then it would be classified entirely as an expense? e.g. if you limited company had an office in a building somewhere?

Would depend on the agreement and t&c's of the office space you would be renting. In most cases redecoration of offices is down the the property owner, you just rent the space. Your business paying for the redecoration of offices you don't own would be unusual. If you are looking to try get a room redecorated in someone elses house then no.

If it looks like a scam/tax dodge it probably is... and I can't believe the amounts involved would be worth it remembering that the only saving is 20% CT tax. The rest still comes out of your pocket. If you believe these amounts are enough to put you HMIT's radar, which inturn could possibly lead to an IR35 investigation then go for it.

[formant]

I would even argue if your 'office' is your front room you shouldn't be claiming the £4 either.

I agree. I work pretty much exclusively from home aside from occasional brief visits at the ClientCo office. I'm not claiming the £4/week. My 'office' is a desk in my living room. Most of the equipment used for the job was sent to me by the client (2 laptops, 3 screens, keyboards, etc). I'm not sure what I'd be claiming those £4 for. My printer (yet to be used for this contract)? The desk-space that the clients hardware is taking up? I'd feel like I was taking the p-ss if I did.

[NorthWestPerm2Contr]

Desk, office chair, printer, filing cabinets etc all ok - new sofa and a big screen tv - no - duality of purpose

One final question:

If it were in a separate premises then it would be classified entirely as an expense? e.g. if you limited company had an office in a building somewhere?

[NorthWestPerm2Contr]

Desk, office chair, printer, filing cabinets etc all ok - new sofa and a big screen tv - no - duality of purpose

Cheers Lisa - nice friendly response results in resolution. NLUK just prolongs the conversation unnecessarily. Top Lady.

[LisaContractorUmbrella]

So tables, chairs, cabinets, TV etc are all ok?

Desk, office chair, printer, filing cabinets etc all ok - new sofa and a big screen tv - no - duality of purpose