Office equipment when you work from home

[UKSBD]

Limited Company

I work from home in a small office

I've read many a time that you can only claim for things on business if solely for business use, but what happens if you have a work office but also spend evenings in it?

ie
The business needs the PC, desks, equipment, etc. for work but I also use the same office after work for general use

Can the business still buy all this equipment, get relief on it, even if I use it after work?

 

[DontAsk]

It always used to be the case that you could apportion use of rooms and claim pro-rata but nowadays it seems that HMRC only talk about the flat rate scheme that was introduced in 2013.

 

[Scalloway]

I think in theory you are getting a benefit in kind (BIK) from the company which you need to pay tax on.

 

[UKSBD]

I think in theory you are getting a benefit in kind (BIK) from the company which you need to pay tax on.

The current PC, desk, chairs, equipment, etc. doesn't belong to the company.
Does that mean I can charge the company for the use of it

 

[MyAccountantOnline]

Limited Company

I work from home in a small office

I've read many a time that you can only claim for things on business if solely for business use, but what happens if you have a work office but also spend evenings in it?

ie
The business needs the PC, desks, equipment, etc. for work but I also use the same office after work for general use

Can the business still buy all this equipment, get relief on it, even if I use it after work?

When you have a limited company private use doesn't mean your company can't get tax relief on the costs - you are possibly thinking of sole traders where tax relief is based on business use, so if for example a PC is used for 50% of the time for business purposes, you claim tax relief on 50% of the cost. It's not the same for a limited company.

If the company buys an asset which you have private use of it can create a tax and NI charge called a benefit in kind.

Have a read here - https://www.gov.uk/expenses-benefits-assets-available-to-employee

 

[UKSBD]

When you have a limited company private use doesn't mean your company can't get tax relief on the costs - you are possibly thinking of sole traders where tax relief is based on business use, so if for example a PC is used for 50% of the time for business purposes, you claim tax relief on 50% of the cost. It's not the same for a limited company.

If the company buys an asset which you have private use of it can create a tax and NI charge called a benefit in kind.

Have a read here - https://www.gov.uk/expenses-benefits-assets-available-to-employee

What happens when it is the other way round?

All the equipment, PC, monitors, chairs, etc. belong to me.

My accountant claims £156 for use of residence as office is that to cover all the equipment I own but the company uses?

I'm about due another PC, monitors, chair, etc. which will probably be used 1/3 business - 2/3 personal, would I be better really buying it myself and letting company use it (not VAT registered so no VAT benefit)?

 

[MyAccountantOnline]

What happens when it is the other way round?

All the equipment, PC, monitors, chairs, etc. belong to me.

My accountant claims £156 for use of residence as office is that to cover all the equipment I own but the company uses?

I'm about due another PC, monitors, chair, etc. which will probably be used 1/3 business - 2/3 personal, would I be better really buying it myself and letting company use it (not VAT registered so no VAT benefit)?

If you own the office equipment your company can't claim any tax relief on it unless you sell it to the company.

Generally it's beneficial for a company to buy office equipment (some equipment is currently eligible for 130% tax relief) for an employee to use.

Your accountant should be the best person to advise you as they have all relevant information, but £156 for use of home is an odd amount. Have a read here (additional household expenses) and then query it with your accountant https://www.gov.uk/expenses-and-ben...xpenses-and-benefits-that-are-exempt-from-tax. I'd also ask your accountant for advice on charging your company rent.

 

[UKSBD]

Your accountant should be the best person to advise you as they have all relevant information, but £156 for use of home is an odd amount.

Thank you

At the moment I have 2 Ltd companies both run from my same home office so he puts £156 against each and also £140 a year for Broadband/phone

He's mentioned rent in the past but we decided it wasn't really worth it.

As I will be using the equipment far more for personal use I think it makes more sense me owning it for the sake of a few pounds in tax relief.