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  • Writer's pictureGreenline Accountants

Q & A  "I am considering building a home office. Is this classed as an allowable expense for tax?"

Working from home has become for many, to borrow an overused cliche, "The New Normal". So what if you decide to set up and build yourself an new office at home.

(The below is intended for guidance only, and clients should discuss with us prior to making any decisions)

In this example we will use the construction of a new home office in a residential garden, such as a smart pod or timber type structure.

Unfortunately an outbuilding itself will be classed as a structure. Therefore and it is not usually possible to claim tax relief for the costs of the building. This also applies if it is movable.

In addition the costs of any planning or installation will not be claimable.

The good news however is that the cost of any equipment and furnishings in the office is allowable as an expense and tax relief can be claimed, while it may also be possible to for the cost of some plumbing and wiring and thermal insulation to be included.

Additionally the "running costs" of the garden office, for example heat, light repairs and renewals should also be claimable, although this may require some apportionment depending on bills/meters etc.

The VAT treatment however on the outbuilding office may be different and in some circumstances could be allowable, and therefore would recommend specific consultation on this.

If you are considering such an arrangement for home working, we would ask you to please contact us ahead of any decision.


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