gym equipment

[gurps5]

I own a ltd company and am the director and only employee.

I sit around all day and wanted to purchase a gym for use.

How can i expense this as a work asset as its because of my work im purchasing it.

Also am purchasing through ebay. Will this cause any issues as it will be second hand

 

[Highgate]

Take on a few personal training clients?

 

[gurps5]

Im a wholesaler by trade.
I would prefer to expense it as what it is intended for...i.e health of employees

 

[qul]

might be able to claim capital allowances if the gym is used to provide occupational health support to keep staff (you!) healthy

 

[gurps5]

How do i go about and do that

 

[SBlundell]

You can certainly claim capital allowances on gym equipment provided for employee welfare. Unfortunately, I can't currently find the relevant guidance.

This is the relevant guidance for revenue expenditure http://www.hmrc.gov.uk/manuals/bimmanual/BIM47070.htm but I can't find the equivalent for capital (which will follow the same principles). I'm still working on it..... I guess the first paragraph of this http://www.hmrc.gov.uk/manuals/camanual/CA27100.htm gives the idea.

The only question is - is the business truly providing this as a benefit of employment? Does perchance the company operate from your home? I think as sole employee & the home owner you would have to put together a strong argument that the assets purchased are for the business.

And to answer your actual question - you would go about it by the company purchasing the equipment, capitalising it in its accounts & then recording capital allowance additions with the relevant AIA / WDA on the pool in the company's CT600.​

 

[elaine@cheapaccounting]

I think I would struggle to stand in front of a tax inspector and justify this as a business expense in the accounts of a one person business.

As long as you can justify it then do capitalise it as equipment.

Do remember that the saving is just the 20% of tax - is it worth the risk?

 

[David Griffiths]

Where is this equipment going to be located? It could well be a struggle to get HMRC to accept that it is a business expense, and if you work from home then the chances are reduced even more.

 

[businessfunding]

If it is to be used for employee welfare then you will have a duty to ensure the environment is safe and proper for general use.