If you work from home have you ever been tempted to build a stand-alone structure in your garden from which to work?

Given that you have sufficient space in your garden a work dedicated outbuilding is certainly an attractive alternative to littering your home with business paraphernalia.

But what are the tax consequences?

It is not generally possible to claim relief for either the cost of the build or its planning without other problems occurring in the future .However, it is possible to claim capital allowances on fixtures and fittings. This will usually be at 100% in the year of acquisition.

It is also possible to claim for plumbing, thermal insulation and specific elements of electric wiring.

Additionally, relief can be claimed for the demonstrable costs of running the office.

If your business is registered for Vat any incurred on the cost of the structure, on fixtures and fittings and on the running costs can be reclaimed.

Importantly you must remember to check that your deeds allow home working and to remember the possible impact of business rates.

For further advice please call us on 01462 420042 or email info@hw-associates.co.uk