Coffee Machine with Company Money?

[Seandow]

Hi, I work at home and work mostly from there on my Internet business, a UK registered limited company. Would it be acceptable to buy a coffee machine and classify it as a company expense?

Thanks

 

[roydmoorian]

Most definitely, just so long as you don't use it outside office hours...............

 

[Ian J]

Most definitely, just so long as you don't use it outside office hours...............

Or weekends

 

[Seandow]

Most definitely, just so long as you don't use it outside office hours...............

Serious?

 

[roydmoorian]

Serious?

Tongue firmly in cheek.......

 

[Seandow]

Phew... but seriously, is it ok or will I go to jail?

 

[kevin.doran]

I here Winson Green's comfy this time of year...

 

[Chris Ashdown]

Presumably you see reps and others in your office / home and would need to offer refreshments so if the cost was a few pound i would try it on, if a top end espresso machine then no chance

 

[UK Contractor Accountant]

dont forget to also claim for the coffee, tea, sugar, biscuits, napkins, spoons, filter paper, milk, cream, the little chocalates and waffers.

 

[Seandow]

Thanks guys, especially Chris, can anyone confirm that a £500 espresso machine would be inappropriate? Is that 'top end'? I know offices do buy coffee machines for their staff

 

[Seandow]

More importantly maybe, what's the worse that can happen if I put it as an expense?

 

[10032012]

Hi, I work at home and work mostly from there on my Internet business, a UK registered limited company. Would it be acceptable to buy a coffee machine and classify it as a company expense?

Thanks

As long as you start paying business rates on your home office/kitchen, it will be fine.

 

[Seandow]

Sorry, business rates for what, what are business rates in this context and how do we start that?

 

[10032012]

Business Rates are non-domestic taxes, its like the opposite to Council Tax on residential properties.

Most home offices you can get away with just Council Tax; but in this instance you would need your home revalued to be divided into residential and commercial. You would pay less council tax, but have to pay business rates on part. probably end up costing more money.

 

[Seandow]

I didn't know that at all, thank you very much, that makes sense!

 

[Ian J]

can anyone confirm that a £500 espresso machine would be inappropriate? Is that 'top end'? I know offices do buy coffee machines for their staff

Being serious for a minute I think that you would struggle to justify that sort of expense to HMRC if they started asking questions unless you entertained a stream of business visitors to your home

 

[Seandow]

That, I think, answers it Ian. Thanks

 

[Billmccallum]

Ditto what Ian J said, if you have lots of business visitors you can justify a machine, but if its only you using it then it's not really a business expense...is it!!!!!

 

[nelioneil]

I would seriously consider employing the services of an accountant. Limited companies have different rules and much more administration than your typical self employed business.

Ian is correct. You can pay for it with company money but this cost will need to be added back to working out your corporation tax...

Good luck!