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Garden Offices – Do They Count as a Business Expense?

The benefits of a garden office
If you are considering the addition of a garden office, then you are not alone. The recent pandemic has seen many people across the country invest in a garden office, and for a good reason. With working from home becoming the new normal for many, a garden office offers the privacy, space and convenience you need to work from home sufficiently and safely.
A garden room provides a quiet and isolated area to focus and give your all to your work while still being at home. When you are not using your garden office for work, it can double up as extra living space, storage place, exercise space or an area to practise a hobby. The benefits of garden rooms are many.
Can you claim a garden office on expenses?
So, the big question is can you claim the cost of your garden room as a business expense? The answer is not a definite yes or no. You may wish to claim your garden office as a company asset. If so, and you are VAT registered, then you can claim VAT on the cost of your new garden office.
If you are a sole trader, you may only claim a percentage of the VAT. If you use your garden office for personal use and work, you will need to assess the ratio. For example, if it is used for personal use 20% of the time, you will only claim 80% of the VAT.
Other than deducting the VAT, it is unfortunately not possible to claim any additional costs relating to your garden office as business expenses. However, furniture, fittings and equipment may be claimed for. You may also claim for electrical work and installation.
Utility Bills
You can deduct the cost of utility bills in two ways. If your garden office is running from a separate meter from the rest of your property, you can claim the total amount. If, however, it is linked to your property, you will need to work out the portion of the bill solely for the garden office.
To Summarise
A garden office is undoubtedly an excellent investment. Whether you are a sole trader or a company, you will need to make sure you research the rules that relate to you. Tax, VAT and expenses can be complex matters, so be sure to fully swat up on the rules that apply to you and what you can claim.
For information on the garden rooms we offer at Fern Garden Rooms, contact us today on 01277 244003.

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