External office built on home premises

Discussion in 'General Business Forum' started by NEF, Oct 9, 2019.

  1. NEF

    NEF UKBF Regular Free Member

    154 8
    If I built an office in my garden for business related and office activities, how does this impact me as in If I sold my property and is there any requirements to look into for this, as it will always be classed as owned by the business or as a business asset?
     
    Posted: Oct 9, 2019 By: NEF Member since: Jan 14, 2008
    #1
  2. SteLacca

    SteLacca UKBF Ace Free Member

    1,479 288
    Yes, there are some very compelling reasons to look at this more closely:

    • Possible liability to business rates
    • Possible loss of private residence relief for capital gains tax purposes

    You almost certainly do not want an area of your home exclusively allocated for business use, and you almost certainly do not want any part of your residence owned by he business.
     
    Posted: Oct 9, 2019 By: SteLacca Member since: Jun 16, 2016
    #2
  3. kulture

    kulture UKBF Legend Staff Member

    7,959 2,169
    There is nothing stopping you having a shed in your garden in which you occasionly use for office work and sometimes use for recreation. Clearly this would not include a spce where customers come on a regular basis.
     
    Posted: Oct 9, 2019 By: kulture Member since: Aug 11, 2007
    #3
  4. estwig

    estwig UKBF Legend Free Member

    12,262 4,292
    It won't be owned by the business, that's too complicated mainly for planning and land ownership reasons.

    You own the garden office and your business pays you rent for it's use, speak to your bean counter. It will always remain as residential, not commercial usage.
     
    Posted: Oct 9, 2019 By: estwig Member since: Sep 29, 2006
    #4
  5. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,637 2,151
    Far better to be quite and not annoy the neighbours, don;t charge for the rent, keep the lawnmower and some tools in as well as your office , nobody knows, and your only in there whilst the other room in the house is being decorated is the answer, or presently looking for a low cost office but nothing found so far, why invite potential trouble when its easily avoided, and are you really desperate for that extra rent and heating money
     
    Posted: Oct 9, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #5
  6. ComPropSolicitor

    ComPropSolicitor UKBF Regular Free Member

    183 29
    Just to add another layer of trouble - if its mortgaged there will be a condition/ term not to use the Property (which includes the whole of the land mortgaged to the Lender) for business purposes. So technically you would be in breach of the terms of your mortgage.
     
    Posted: Oct 9, 2019 By: ComPropSolicitor Member since: Feb 1, 2019
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    16,753 1,871
    No one will care about a man cave, a shed, a summerhouse, a place you go to get away from it all.
    People will care if they find out you have an office on your premises.

    So you make sure they cannot find out and if someone does go in, its set up as what you declare it to be.
     
    Posted: Oct 9, 2019 By: Mr D Member since: Feb 12, 2017
    #7
  8. estwig

    estwig UKBF Legend Free Member

    12,262 4,292
    Some utter nonsense spouted here, I'm surprised.

    Nothing wrong with working from home, in an office in the garden, perfectly legit and claim for part use of the home as an office, which is normally done by the business renting a room, in this case the office in the garden.

    It only becomes an issue if it disturbs the neighbors, which is mainly by noise, so lots of people visiting is frowned upon.

    Lawnmower in the corner of the office!!!!!!!!!!! :)
     
    Posted: Oct 9, 2019 By: estwig Member since: Sep 29, 2006
    #8
  9. NEF

    NEF UKBF Regular Free Member

    154 8
    What I wanted to know is could I fund from my business to build a small brick outbuilding to use as an office... So the general consensus is to just build one out of my own money and charge the company a small portion for its use... Its only to store some items and a computer ?
     
    Posted: Oct 9, 2019 By: NEF Member since: Jan 14, 2008
    #9
  10. estwig

    estwig UKBF Legend Free Member

    12,262 4,292
    Yes you got it. Don't build it outta brick, the neighbors will think your up to something iffy, people have a strange perception of brick buildings, use timber.
     
    Posted: Oct 9, 2019 By: estwig Member since: Sep 29, 2006
    #10
  11. KM-Tiger

    KM-Tiger UKBF Legend Full Member - Verified Business

    9,861 2,621
    And what's wrong with a brick sh*thouse?

    But seriously, to the OP, maybe worth talking to your accountant to see if there is a tax efficient way of financing this.
     
    Posted: Oct 9, 2019 By: KM-Tiger Member since: Aug 10, 2003
    #11
  12. NEF

    NEF UKBF Regular Free Member

    154 8
    So how come you can work from your house or garage but not a Brick shed in your garden ?
     
    Posted: Oct 9, 2019 By: NEF Member since: Jan 14, 2008
    #12
  13. Mr D

    Mr D UKBF Legend Free Member

    16,753 1,871
    People are just funny about additional brick buildings.
    No idea why.
     
    Posted: Oct 9, 2019 By: Mr D Member since: Feb 12, 2017
    #13
  14. NEF

    NEF UKBF Regular Free Member

    154 8
    I must admit the advice on forums, is more confusing than helpful ...
     
    Posted: Oct 9, 2019 By: NEF Member since: Jan 14, 2008
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    16,753 1,871
    LOL.
    Pretty normal for the internet. Can be useful though. :)
     
    Posted: Oct 9, 2019 By: Mr D Member since: Feb 12, 2017
    #15
  16. estwig

    estwig UKBF Legend Free Member

    12,262 4,292
    Your asking quite a complex question, it involves tax matters, planning issues, neighbors and a life style choice for you.

    I'm good, very good in fact, but I can't fix everything!
     
    Posted: Oct 9, 2019 By: estwig Member since: Sep 29, 2006
    #16
  17. Lucan Unlordly

    Lucan Unlordly UKBF Ace Free Member

    1,418 258
    Brick built buildings cannot be determined as 'temporary structures', and as such may have different regulations to, for example, an oversized caravan that you rent for a weeks holiday, that will never move but which has an axle and two wheels underneath to help get round any planning issues.:D
    Most of the log cabin type structures fall into the temporary building classification.
     
    Posted: Oct 9, 2019 By: Lucan Unlordly Member since: Feb 24, 2009
    #17
  18. estwig

    estwig UKBF Legend Free Member

    12,262 4,292
    Utter nonsense, but a very common perception.
     
    Posted: Oct 10, 2019 By: estwig Member since: Sep 29, 2006
    #18
  19. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,637 2,151
  20. Lucan Unlordly

    Lucan Unlordly UKBF Ace Free Member

    1,418 258
    Quote: Temporary structures that immediately spring to mind include tents, marquees, gazebos, greenhouses, sheds and prefabricated cabins. Permanent buildings include brick and mortar houses, offices and factories, as well as steel or aluminium warehouses, workshops and showrooms.
     
    Posted: Oct 10, 2019 By: Lucan Unlordly Member since: Feb 24, 2009
    #20