Is a coffee machine a business expense?

[billybob99]

I only drink coffee during business hours, purely for business.

Machine comes with hefty VAT - if reclaimable, would be handy for other stuff.

 

[The Byre]

If it's only for you, why not use a simple and cheap (£10-£25) cafeteria?

Real coffee and faster than that instant rubbish.

If you must lash-out for an expensive coffee machine, at least make it a bean-to-cup - prices start at around £250.

And the answer is yes if only placed in your place of work.

 

[estwig]

My Delonghi coffee machine is a business expense.
Only girls drink coffee, real men drink tea, so my coffee machine is purely for visiting clients.

 

[Scalloway]

Is your business a limited company or are you a sole trader?

 

[billybob99]

If it's only for you, why not use a simple and cheap (£10-£25) cafeteria?

Real coffee and faster than that instant rubbish.

If you must lash-out for an expensive coffee machine, at least make it a bean-to-cup - prices start at around £250.

And the answer is yes if only placed in your place of work.

I agree Gramps, the pod stuff isn't great, waiting for coffee pods to run out, bean-to-cup is the way to go.

The bean-to-cup I'm looking at is around £400 so just double checking if the VAT can make its way back into the cup.

 

[billybob99]

My Delonghi coffee machine is a business expense.
Only girls drink coffee, real men drink tea, so my coffee machine is purely for visiting clients.

I should have clarified, I only drink Columbian triple espresso shots to get the heart moving.

 

[billybob99]

Is your business a limited company or are you a sole trader?

It is a Ltd co.

 

[estwig]

I should have clarified, I only drink Columbian triple espresso shots to get the heart moving.

Is this whilst wearing a tutu and listening to the Bee Gees!

 

[billybob99]

Is this whilst wearing a tutu and listening to the Bee Gees!

Nothing wrong with the Bee Gees.

 

[The Byre]

Nothing wrong with the Bee Gees.

Keep saying that and one day you'll believe it!

I'll stick to Rammstein and NWA.

 

[billybob99]

 

[The Byre]

I forgot that great poet and philosopher Nicki Minaj.

How could I forget Her Minajesty!

 

[TheCyclingProgrammer]

I put the cost of a coffee machine through the business but it’s for my garden office and used during office hours only so felt it was justifiable as much as any other office equipment.

If it’s going in your kitchen I’d say it would be harder to justify to a tax inspector that it was wholly and exclusively for business purposes. Your call.

 

[Ian J]

I put the cost of a coffee machine through the business but it’s for my garden office and used during office hours only so felt it was justifiable as much as any other office equipment.

I don't drink coffee but I do like gin so perhaps if I drink it during working hours I can put the cost against tax

 

[billybob99]

I don't drink coffee but I do like gin so perhaps if I drink it during working hours I can put the cost against tax

Only if its a gin dispensing machine.

 

[The Byre]

Could you please make that a single malt dispensing machine! I'll come past and visit if you do!

 

[KAC]

We had a Gaggia bean to cup machine in the office which was definitely a tax deductible business asset

 

[Scalloway]

It is a Ltd co.

A limited company is allowed to provide tea and coffee facilities for its staff. This is allowable for tax.

 

[TheCyclingProgrammer]

I don't drink coffee but I do like gin so perhaps if I drink it during working hours I can put the cost against tax

Not really a fair comparison. It’s not unusual for a company to provide tea and coffee making facilities for its staff and the whole point of having a separate office is to keep a separation of home and work life. My accountant had no problem with it and neither did I.

 

[billybob99]

Not really a fair comparison. It’s not unusual for a company to provide tea and coffee making facilities for its staff and the whole point of having a separate office is to keep a separation of home and work life. My accountant had no problem with it and neither did I.

Ian just wants to create some separation from work by getting absolutely smashed so he can't remember it.

 

[Spur Support Services]

As Scalloway says canteen drinks facilities are OK.
To me TheCyclingProgrammer has given you the best answer yet.
If you are a company the machine has to be wholly and exclusively used for business purposes and make sure it is invoiced to the company. So TCP has reinforced this business function by putting physical separation on the coffee machine. VAT would be fully reclaimable.

If you are self employed, then you will be able to claim the business portion, if it was used for both private and business purposes. You would need to disallow the personal portion of the VAT. If you are a real caffeine addict then this will still work in your favour.

However, there may also be an argument that you wouldn't have purchased the machine if you didn't have the business, indicating it is exclusively business. This may apply if you argue that you personally survived by making coffee with a cafetierre for years and only got the machine to increase your working hours, by reducing your "kettle boiling" lost time.

NB Wrapping it and putting it under the Christmas tree is not a good indicator of business exclusivity...

 

[Ian J]

To me TheCyclingProgrammer has given you the best answer yet.

That's probably because he is the only one that didn't realise that the question was asked with tongue firmly in cheek

 

[Spur Support Services]

That's probably because he is the only one that didn't realise that the question was asked with tongue firmly in cheek

I've come across Directors putting their new kitchens through the business, so I never assume that anything is tongue in cheek

 

[billybob99]

That's probably because he is the only one that didn't realise that the question was asked with tongue firmly in cheek

 

[cts1975]

If it’s going in your kitchen I’d say it would be harder to justify to a tax inspector that it was wholly and exclusively for business purposes. Your call.

I purchased a Gaggia Bean 2 Cup. I made a the VAT inspector a cappuccino with it just to be sure.

 

[estwig]

If you lot can get the vat back on your coffee nonsense.

I'm 'aving it for my teapot and matching sugar bowl!

 

[Deleted member 59730]

I've come across Directors putting their new kitchens through the business, so I never assume that anything is tongue in cheek

I don't see the difference in whether one is a sole trader employing staff or a Ltd employing staff.

And yes, I once put a full kitchen down to my sole trader business and claimed the VAT back. What is a food photographer to do?

 

[UKSBD]

If you lot can get the vat back on your coffee nonsense.

I'm 'aving it for my teapot and matching sugar bowl!

They don't put sugar it in strong, robust paper bags so that you have to have a sugar bowl.
What's wrong with just spooning it out the bag?

 

[Scalloway]

I don't see the difference in whether one is a sole trader employing staff or a Ltd employing staff.

The answer is employing staff. A sole trader is not an employee so tea and coffee are purely a personal expense. If the sole trader has employees they can provide them for their staff.

 

[KAC]

I purchased a Gaggia Bean 2 Cup. I

They're good machines aren't they

 

[estwig]

What's wrong with just spooning it out the bag?

Peasant - Clearly a coffee drinker!

 

[billybob99]

Peasant - Clearly a coffee drinker!

You have got a lot against the humble coffee bean, relax and pour yourself a cup of Darjeeling tea.

 

[Deleted member 59730]

The answer is employing staff. A sole trader is not an employee so tea and coffee are purely a personal expense. If the sole trader has employees they can provide them for their staff.

My staff never objected to sharing their tea and coffee with me. Tea and Coffee that I paid for.

 

[estwig]

You have got a lot against the humble coffee bean, relax and pour yourself a cup of Darjeeling tea.

Sinking to such low depths, only to be expected of a coffee drinker!

 

[simon field]

They don't put sugar it in strong, robust paper bags so that you have to have a sugar bowl.
What's wrong with just spooning it out the bag?

Spoon? Spoon?

They just tip straight from the bag round here!

 

[UKSBD]

Spoon? Spoon?

They just tip straight from the bag round here!

What do you use to flick the teabag out the window with, if you haven't got a spoon?

 

[billybob99]

What do you use to flick the teabag out the window with, if you haven't got a spoon?

He uses the teabags with the little string attached.

You grab the string and swing the teabag around above your head for4-5 swings and just let go, it lands where it lands.

 

[estwig]

You grab the string and swing the teabag around above your head for4-5 swings and just let go, it lands where it lands.

That's not how teabagging is done!

 

[UK Contractor Accountant]

Right I have looked into the VAT recovery position of the coffee machine as some replies seem to miss the point.

VAT is recovered in full on the machine and the coffee supplies. When you stand in front of the machine you need to ask yourself if this cup of coffee the machine is going to make for private use or business use.

If for private use you have to account for VAT on the supply under the Lennarz principle - one of those EU Court rulings where you account for output VAT in the value of the deemed supply of the cup of pipping hot Costa Rican.

If adding sugar and one of those little smiling faces in the throth you will need to add an extra say 50p to the deemed supply.

 

[billybob99]

and the coffee supplies

Bonus.

Coffee beans coming up.