{"id":63,"date":"2021-10-01T09:57:00","date_gmt":"2021-10-01T09:57:00","guid":{"rendered":"https:\/\/finconcile.com\/blogs\/?p=63"},"modified":"2022-01-04T10:31:30","modified_gmt":"2022-01-04T10:31:30","slug":"the-tax-implications-of-building-a-garden-office-for-the-company-and-the-director-employee","status":"publish","type":"post","link":"https:\/\/finconcile.com\/blogs\/the-tax-implications-of-building-a-garden-office-for-the-company-and-the-director-employee\/","title":{"rendered":"The Tax Implications Of Building A Garden Office For The Company And The Director\/employee"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"63\" class=\"elementor elementor-63\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f5594f1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f5594f1\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ad813b8\" data-id=\"ad813b8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3665bad elementor-widget elementor-widget-heading\" data-id=\"3665bad\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-large\">The Tax implications of building a garden office for the company and director employee <\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aeb1053 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aeb1053\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d7c2979\" data-id=\"d7c2979\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-51539b6c elementor-widget elementor-widget-text-editor\" data-id=\"51539b6c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<!-- wp:paragraph -->\n<p>When constructing or purchasing a garden office through a limited business, directors must address many tax difficulties. This article will take you to the tax consequences for people who work from home and how establishing a garden office can affect your tax situation.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h4>Implications of tax<\/h4>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When the company pays for the garden office, it will need to consider the impact of the following taxes and allowances-<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul>\n<li><strong>Corporation Tax Relief:<\/strong>\u00a0The corporation can cover the entire cost if the garden office is used for business reasons. The actual building cost, however, is not eligible for a company tax deduction. The expense of running the office, including heating and lighting, is tax-deductible.<\/li>\n<li><strong>Capital Allowances:<\/strong>\u00a0Capital allowances are available for assets classified as Plant and Machinery (P&amp;M). If the item purchased qualifies for Annual Investment Allowance (AIA), a business can claim 100 per cent of the asset&#8217;s cost in the first year, subject to an annual limit.<\/li>\n<\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>The good news is that fixtures and fittings do qualify for tax relief under capital allowances, allowing you to claim for items such as furniture, drapes, shelves, and so on. The expense of putting in power, including electrical wiring, light fixtures, and heating, is also eligible. Despite being part of the primary structure, thermal insulation qualifies as well.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>VAT (Value-added tax):<\/strong>\u00a0Reclaiming VAT can make a considerable difference in the cost of construction. VAT paid on the price of a building structure, furniture, or furnishings might be refunded if they are utilised only for business purposes. VAT cannot be reclaimed if you are a company director and use the lodging for personal reasons. However, if you use the accommodation for both business and personal purposes, you can only reclaim the business component of VAT, and you must allocate it fairly and reasonably. However, if you employ the VAT flat rate system, you should consult with a tax specialist.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Benefit-in-kind (BIK) is payable when a company\/employer pays for the director&#8217;s or employee&#8217;s expenses. For example \u2013 The company paying for employees&#8217; loft or charges of the garage. If a company paid for a garden office and used it privately for other means or by other family members, this will attract a benefit in kind charge.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h4>Other Concerns<\/h4>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>You must also consider other elements that may impact your decision to establish a garden office.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Insurance<\/strong>\u00a0\u2013 Adding a garden office to your property may affect your home insurance. As a consequences, it is suggested that you call your insurance carrier and inform them of your plans before carrying them out.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Planning approval<\/strong>\u00a0-If you want to conduct a business from your house, you may need planning clearance. Depending on the kinds and type of business, you may need to apply for a licence. As a result, contacting the local authority for advice is a necessary step before proceeding.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Mortgage<\/strong>\u00a0-Creating a garden office and using a portion of your house for commercial purposes may have an impact on your mortgage.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h4>What services does FinConcile provide?<\/h4>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>FinConcile works with accounting companies in the United Kingdom to help them develop by improving operational efficiency and addressing scaling difficulties with the help of an experienced workforce. Their solutions allow companies to expand while maintaining strong profit margins and productivity. Due to excessive workloads, the skilled staff takes over\u00a0<strong><a href=\"http:\/\/www.finconcile.com\/year-end-accounts.php\">outsourced accounting service<\/a><\/strong>\u00a0finance and accounting duties, making it difficult to transfer their focus from administrative responsibilities<\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The Tax implications of building a garden office for the company and director employee When constructing or purchasing a garden office through a limited business, directors<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":64,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[17,20],"tags":[52,11],"class_list":["post-63","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporation-tax","category-vat-returns","tag-finance-and-accounting","tag-outsourced-accounting-service"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/63","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":4,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"predecessor-version":[{"id":509,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/63\/revisions\/509"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/media\/64"}],"wp:attachment":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}