Tax - Can We Claim On Garage Rent?

Discussion in 'Accounts & Finance' started by MrsPD, May 19, 2012.

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  1. MrsPD

    MrsPD UKBF Newcomer Free Member

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    Hi. My husband is a self-employed gardener and we rent a garage off the local authority (since we also live in a council property). The garage is used solely for keeping his gardening machinery & tools in, and somebody mentioned to me today that we should be able to claim for the garage which is £4.95 a week. We have never claimed before so I thought I'd make some enquiries. Any advice would be much appreciated!
     
    Posted: May 19, 2012 By: MrsPD Member since: May 19, 2012
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  2. roydmoorian

    roydmoorian UKBF Ace Full Member - Verified Business

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    Could save you 99p a week in tax but being a council garage they might want to charge an extra £5.00 a week and then add rates on top because it is being used commercially - probably best to keep quiet ;)
     
    Posted: May 19, 2012 By: roydmoorian Member since: Nov 6, 2009
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  3. MrsPD

    MrsPD UKBF Newcomer Free Member

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    Ah my husband suspected as much! Thank you very much for your reply, we will take your advice :)
     
    Posted: May 20, 2012 By: MrsPD Member since: May 19, 2012
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  4. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    The tax issue and the authorised use of the garage are two separate issues.

    Yes if the garage is wholly and exclusively used for business then it is an allowable expense.

    As to the council's view's treatment of the garage being used for business - you should ring them. In some cases they will not make any additional charge but in theory they could do so.

    Also consider the insurance of the equipment assuming that it has some value.
     
    Posted: May 21, 2012 By: [email protected] Member since: Nov 4, 2005
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  5. Strontium Dog

    Strontium Dog UKBF Regular Free Member

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    You are not getting tax relief, but this does not mean that you are not contravening council regs.

    Why not just claim the tax relief anyway but not tell the council?

    The two things are not really connected, and I cannot see how the council would find out, or that the consequences would be particularly serious even if they did.
     
    Posted: May 21, 2012 By: Strontium Dog Member since: Dec 2, 2008
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  6. spicetheice

    spicetheice UKBF Newcomer Free Member

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    It's better not to let in the council get a whiff of it. You might end up paying more than what you are trying to claim now :D

    Here, silence is golden!
     
    Posted: May 23, 2012 By: spicetheice Member since: May 15, 2012
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  7. mauahmed

    mauahmed UKBF Newcomer Full Member

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    Yes. Please make sure that you keep the receipts. Thanks.
     
    Posted: May 23, 2012 By: mauahmed Member since: Jul 5, 2006
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  8. faradaykeynes

    faradaykeynes UKBF Ace Full Member - Verified Business

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    If council charge you more rent and business rates for garage , all that is tax allowable expense any way, find out if it is not too much of a cost up then its better to complied with local authority as well plus if council finds out some how that garage is sued for commercial activities with being notified then what?
     
    Posted: May 23, 2012 By: faradaykeynes Member since: Apr 19, 2012
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  9. mcjohn

    mcjohn Banned

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    Very first, you should verify about all the circumstances in which you can receive compensation for garage rent. Then check that if you have all documents and rent bills available or not. And finally consult with a legal and financial consultant for final decision. If you have made any mistakes while claiming for garage rent then you may have to pay tax and other bill as charged by the council. You must know that it is a legal process that will involve court hours. Complete proof and documents can help you to win compensation. You must read the entire situation and then apply for the same.
     
    Posted: May 24, 2012 By: mcjohn Member since: May 24, 2012
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  10. MrsPD

    MrsPD UKBF Newcomer Free Member

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    Thank you all for the replies, much appreciated!
     
    Posted: May 29, 2012 By: MrsPD Member since: May 19, 2012
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