Can Your Limited Company or Business Pay for a Garden Office?

Steve Bicknell

4 hours ago

Tax, VAT, Capital Allowances, CGT, Private Use & Planning Explained

By Steve Bicknell FCMA, CGMA

Garden offices have gone from being a relatively niche home improvement to a serious option for company directors, business owners, consultants and the self-employed.

And there is a good reason.

Hybrid and home working have not disappeared following the pandemic.

According to the Office for National Statistics (ONS), 28% of working adults in Great Britain hybrid worked between January and March 2025.

The proportion was even higher among those most likely to be carrying out professional work from home: 45% of workers earning £50,000 or more hybrid worked. Managers, directors and senior officials were also among the occupations most likely to hybrid work.

So it is hardly surprising that purpose-built garden offices have become increasingly popular.

And these are no longer necessarily glorified sheds.

Current commercially available insulated garden offices can easily cost £15,000, £20,000 or considerably more, particularly once you add heating, electrics, air conditioning, plumbing and office equipment.

That creates an obvious tax question:

CAN YOUR LIMITED COMPANY OR BUSINESS PAY FOR YOUR GARDEN OFFICE?

Suppose the project costs:

£30,000 + VAT

Can the business pay the builder?

Can you reclaim the VAT?

Can you claim Corporation Tax or Income Tax relief?

Can you claim capital allowances?

What about the electrics, heating and air conditioning?

Does Structures and Buildings Allowance apply?

What if you occasionally use the office privately?

And, if you operate through a limited company, who actually owns the garden office once your company has paid to construct it on your personally owned land?

Then there is another important question:

WHAT HAPPENS WHEN YOU SELL YOUR HOUSE?

These questions matter because:

£30,000 SPENT ON A GARDEN OFFICE ≠ £30,000 TAX DEDUCTION

And the answer can be different depending on whether you are:

A LIMITED COMPANY

or:

SELF-EMPLOYED

Let’s break it down.

Garden Office Tax – Quick Answer

A limited company or self-employed business can potentially incur expenditure on a garden office genuinely required for the business.

But you should not treat the whole project as one asset.

THE BUILDING

The structural cost will not normally qualify for ordinary plant and machinery capital allowances.

STRUCTURES AND BUILDINGS ALLOWANCE

This initially sounds promising, but a normal garden office within the grounds of your home will generally not qualify because of the residential-property restrictions.

ELECTRICS, HEATING & INTEGRAL FEATURES

These can potentially qualify for capital allowances.

COMPUTERS, DESKS & EQUIPMENT

These can potentially qualify for plant and machinery allowances.

VAT

A VAT-registered business may potentially recover VAT to the extent the expenditure relates to taxable business activities, subject to the detailed rules.

PRIVATE USE

This can affect capital allowances, VAT, employment taxes and CGT, depending on whether you trade personally or through a company.

CGT

Exclusive business use can potentially affect Private Residence Relief when your home is eventually sold.

PLANNING

Many garden offices can be constructed under permitted development rights — but only if the relevant conditions are met.

And for limited companies there is an additional issue:

OWNERSHIP

What exactly does your company own after it has paid to construct a permanent building on your land?

That question can be more important than the capital allowance claim.

Limited Company vs Self-Employed – What Changes?

Many of the tax principles apply to both.

But there are some important differences.

Issue	Limited Company	Self-Employed / Partnership
Who pays?	Company may fund the project	Individual/partnership incurs the expenditure
Building structure	Normally capital; generally no ordinary PMA	Normally capital; generally no ordinary revenue deduction/PMA
SBA	Generally unavailable for a garden office within residential grounds	Same residential-grounds restriction generally applies
Electrics/heating	Potential capital allowances as qualifying integral features	Potential capital allowances, restricted where appropriate for private use
Computers/furniture	Potential capital allowances	Potential capital allowances
AIA	Potentially available on qualifying expenditure	Potentially available on qualifying expenditure
VAT	Potential recovery according to taxable business use	Same principle if VAT registered
Private use	Can create VAT and potentially employment/Benefit in Kind issues	Normally restrict business deductions/allowances and VAT for private use
Company improving your property	Major issue to consider	No separate company/director relationship
Running costs	Company can potentially deduct qualifying business costs	Business proportion potentially deductible
CGT on your home	Exclusive business use can affect homeowner’s PRR	Same potential PRR issue
Planning/business rates	Property rules still apply	Property rules still apply

The key distinction

For someone who is self-employed, the question is principally:

How much of the expenditure genuinely relates to my trade?

For a company director, there is another fundamental question:

Is my company spending its money improving a property that belongs to me personally?

That makes a permanent company-funded garden office potentially more complicated.

Limited Companies – Who Actually Owns the Garden Office?

Suppose you personally own your house and garden.

Your company spends:

£30,000

constructing a permanent office on your land.

The company paid for it.

But does that automatically mean the company owns a £30,000 building?

Not necessarily.

A permanent structure can become part of the land on which it is constructed.

That immediately raises questions:

What exactly does the company own?
Has the company increased the value of the director’s property?
What right does the company have to occupy the office?
Can the company remove it?
What happens if company use stops?
What happens if the director sells the house?
Could value passing to the director create a personal tax consequence?

This is very different from your company buying:

a laptop, desk or printer

and allowing you to use them at home.

A permanent garden office can effectively involve the company paying for capital works on the director’s personally owned property.

That needs careful consideration before construction begins.

Could There Be a Benefit in Kind?

Potentially, depending upon the circumstances.

The employment income and benefits legislation can apply where a company provides assets or benefits to a director for private use.

The precise position with a permanent building on the director’s land depends upon the legal and commercial arrangements, which is another reason not to assume:

“The company paid for it, therefore the company owns it.”

A genuinely company-owned asset which is also made available to a director privately can potentially create a taxable Benefit in Kind.

For most non-land assets, HMRC’s annual-value calculation can start at 20% of the asset’s market value when first provided, subject to the detailed rules.

What About the Self-Employed?

The ownership problem is generally less complicated.

If you are a sole trader and personally own your house, there isn’t a separate limited company paying to improve your personal property.

You and the business are not separate legal persons in the same way as you and your limited company.

But that doesn’t mean:

THE WHOLE GARDEN OFFICE BECOMES TAX DEDUCTIBLE

The structural expenditure remains capital.

You still need to identify qualifying plant and machinery.

And where an asset has both business and private use, capital allowances and expenses may need to be restricted to reflect the genuine business use.

So the limited-company issue may disappear, but:

BUSINESS vs PRIVATE USE

remains extremely important.

Permanent Building or Moveable Office Pod?

There is another distinction worth considering.

Compare:

Permanent garden office

foundations;
mains services;
permanently attached;
intended to remain with the property.

with:

Genuinely moveable office pod

capable of genuine relocation;
potentially owned by the company;
capable of removal when business use ends.

The tax treatment can potentially differ.

Capital allowance legislation includes specific rules relating to certain moveable buildings intended to be moved in the course of the qualifying activity.

But don’t assume that writing:

“Moveable Garden Office”

on an invoice turns a permanent garden room into plant.

The actual construction, purpose, permanence and intention to move it matter.

Private Use of a Company-Owned Pod

A moveable office might solve one problem but create another.

Suppose the company owns the pod.

Monday-Friday

Company office.

Saturday-Sunday

Gym, games room or hobby room.

The company asset is now available for private use.

That can potentially create a Benefit in Kind.

So:

MOVEABLE DOESN’T AUTOMATICALLY MEAN TAX-FREE

For a sole trader, the issue is generally different: the tax claim would normally need to reflect the business/private use.

Worked Example – Consultancy 4 Business Ltd

Let’s consider a limited-company example.

Consultancy 4 Business Ltd wants a high-quality garden office.

The director owns their home personally.

The project costs:

£30,000 + VAT

Fortunately, the supplier provides a breakdown:

Component	Cost
Building structure	£20,000
Electrical installation & lighting	£3,000
Heating / air conditioning	£2,000
Office furniture	£2,000
Computers / equipment	£3,000
Total	£30,000

Those amounts do not all receive the same tax treatment.

Can the Business Claim the Whole £30,000?

Generally:

NO

The structural elements of a building are normally excluded from ordinary plant and machinery allowances.

Think:

foundations;
walls;
roof;
floor;
windows;
doors;
structural framework.

This applies whether you operate through a limited company or are self-employed.

So:

“I use the whole building for my business.”

does not automatically mean:

“I can claim tax relief on the whole building.”

Business use and whether expenditure is qualifying expenditure are two different tests.

What About Structures and Buildings Allowance?

Structures and Buildings Allowance — SBA — provides tax relief for qualifying construction expenditure on certain non-residential structures and buildings.

The allowance is currently:

3% PER YEAR

You might therefore assume a garden office qualifies.

Unfortunately, there is a major problem.

Structures situated within the grounds of a residence are generally excluded.

Therefore, a normal garden office in your home’s garden will generally not qualify for SBA.

This applies whether the business is operated through a limited company or personally.

The £20,000 Structure Could Therefore Get No Capital Allowance

Returning to our example:

Building structure

£20,000

Potential ordinary plant and machinery allowances:

£0

Potential SBA:

£0

That’s why identifying the qualifying elements of the project becomes so important.

Integral Features – Where It Gets Interesting

Certain systems within buildings are specifically treated as integral features for capital allowance purposes.

These can include:

electrical systems;
lighting;
cold water systems;
space heating;
water heating;
powered ventilation;
air conditioning;
air purification.

So in our example:

Electrical installation

£3,000

Heating / air conditioning

£2,000

could potentially qualify for capital allowances.

Ask the Builder for a Detailed Invoice

This is one of the easiest tax-planning steps.

Don’t wait until the accountant receives:

“Supply and install garden office – £30,000.”

Ask the contractor to identify separately, where possible:

groundwork;
foundations;
structure;
roof;
windows;
doors;
electrical installation;
lighting;
heating;
air conditioning;
water;
drainage;
data cabling;
security systems;
furniture;
equipment.

Why?

Because:

DIFFERENT PARTS OF THE SAME GARDEN OFFICE CAN HAVE COMPLETELY DIFFERENT TAX TREATMENTS

Could AIA Give 100% Tax Relief?

Potentially.

Qualifying plant and machinery may potentially attract the:

ANNUAL INVESTMENT ALLOWANCE

subject to the normal conditions and available limit.

That can provide 100% relief for qualifying expenditure.

Our £30,000 project might therefore look like this:

Electrical installation

£3,000

Heating / air conditioning

£2,000

Furniture

£2,000

Computers / equipment

£3,000

Potential qualifying expenditure:

£10,000

So:

£30,000 SPENT

might produce:

£10,000 POTENTIALLY QUALIFYING IMMEDIATELY

rather than £30,000.

Garden Office Tax Breakdown

Expenditure	Cost	Potential Treatment
Structure	£20,000	No normal PMA; SBA generally unavailable
Electrical system	£3,000	Potential integral feature
Heating / air conditioning	£2,000	Potential integral feature
Furniture	£2,000	Potential PMA
Computers / equipment	£3,000	Potential PMA
Total	£30,000	Analyse individually

This is probably the most important practical tax message in the article:

DON’T TREAT “GARDEN OFFICE” AS ONE ASSET

What About the Self-Employed and Private Use?

Suppose a sole trader has the same £10,000 of potentially qualifying plant and equipment.

But the garden office is genuinely used:

Business

80%

Private

20%

The capital allowance position needs to reflect the private use.

The fact that an asset qualifies as plant does not automatically mean the entire expenditure receives business tax relief.

This is an important distinction from a limited company, where private availability/use of company assets can instead create separate employment tax and Benefit in Kind questions.

Can You Recover the VAT?

Now suppose our project costs:

Net

£30,000

VAT

£6,000

Total

£36,000

A VAT-registered limited company or self-employed business may potentially recover VAT to the extent the expenditure is attributable to its taxable business activities, subject to the normal rules.

That could make an enormous difference to the effective cost.

VAT Example – 100% Business Use

Suppose:

the business is VAT registered;
it makes taxable supplies;
it contracts with the supplier;
it receives valid VAT invoices;
it pays the supplier;
the office is genuinely used entirely for taxable business purposes.

Potential input VAT:

£6,000

may potentially be recoverable, subject to the detailed VAT rules.

But don’t claim:

100% BUSINESS USE

simply because it gives the best answer.

It needs to reflect reality.

VAT Example – 80% Business Use

Suppose genuine usage is:

Business

80%

Private

20%

A fair and reasonable restriction may be required.

Illustratively:

£6,000 × 80%

£4,800

potentially attributable to business use.

The appropriate method needs to reflect the actual circumstances.

VAT Flat Rate Scheme – A Major Trap

If the business operates the:

VAT FLAT RATE SCHEME

don’t automatically assume it can recover the £6,000.

Input VAT recovery is significantly restricted under the Flat Rate Scheme.

And garden-office projects frequently include substantial construction services, rather than simply a purchase of capital goods.

For a £30,000–£50,000 project:

CHECK THE VAT POSITION BEFORE SIGNING THE CONTRACT

not after the invoice arrives.

VAT Can Also Come Back Later

Suppose you recover significant VAT because the garden office is genuinely intended for taxable business use.

Three years later:

the company closes;
the sole trader retires;
the office becomes a gym;
it becomes a summerhouse;
private use substantially increases.

A significant change in use can potentially create VAT adjustments.

VAT deregistration can also have consequences for certain assets where input VAT has previously been recovered.

The VAT analysis therefore isn’t simply:

BUILD → CLAIM VAT

It is:

BUILD → USE → CHANGE OF USE → EXIT

VAT and CGT Can Pull in Opposite Directions

This is one of the most interesting parts of garden-office tax planning.

For VAT, you may want:

HIGH BUSINESS USE

because that can potentially support greater VAT recovery.

For Capital Gains Tax, you may want to avoid:

EXCLUSIVE BUSINESS USE

because exclusive business use can potentially restrict Private Residence Relief.

That applies whether you are:

a company director

or:

self-employed.

The solution isn’t to manufacture artificial private use.

The tax treatment should simply reflect:

HOW THE BUILDING IS GENUINELY USED

Could Your Garden Office Cause CGT When You Sell Your Home?

Potentially.

Private Residence Relief normally protects qualifying gains when you sell your main home.

It can also extend to qualifying garden and grounds.

However, part of a property used exclusively for business can potentially fall outside full relief.

That makes a detached garden office particularly interesting.

Compare:

Spare bedroom

Used for work during the day and family purposes at other times.

with:

Detached garden office

Independent access.

Business equipment.

No domestic use.

Possibly separately assessed for business rates.

Those facts can lead to different CGT considerations.

What Counts as Exclusive Business Use?

The important word is:

EXCLUSIVE

Suppose the garden office is genuinely:

used for business Monday-Friday;
used by the family at weekends;
used for hobbies;
used by children for homework;
used socially.

That may produce a different result from:

“Nobody ever uses this building for anything except the business.”

But the private use must be genuine.

Putting a sofa in a 100% commercial office does not necessarily turn it into domestic accommodation.

What If Business Use Stops Before You Sell?

This is another interesting point.

Suppose:

2027-2035

Garden office used for business.

2035

Business closes.

2035-2038

Former office genuinely used as a summerhouse and family room.

2038

House sold.

The CGT analysis can potentially differ from a garden office remaining in exclusive business use right up until disposal.

Actual use and circumstances matter.

This isn’t about changing the label immediately before selling.

It’s about establishing:

WHAT THE BUILDING REALLY IS AND HOW IT IS REALLY USED

Planning – Why Garden Offices Are So Popular

Tax isn’t the only attraction.

Many garden offices can potentially be constructed under permitted development rights without requiring a full planning application.

But there are conditions.

And one common misconception is:

A GARDEN OFFICE DOES NOT GENERALLY HAVE TO BE TEMPORARY

A permanent garden building can potentially qualify as permitted development.

The Important 2.5 Metre Rule

If any part of the outbuilding is within:

2 METRES OF THE BOUNDARY

the maximum overall height under the relevant Class E permitted-development rule is generally:

2.5 METRES

This helps explain why so many garden-office suppliers offer buildings designed around a 2.5m overall height.

What If It’s More Than Two Metres From the Boundary?

Broadly, the permitted-development maximums can instead be:

Dual-pitched roof

4 METRES

Other roof

3 METRES

with:

Maximum eaves height

2.5 METRES

The building must also be single storey.

The 50% Rule

There is also a restriction on the amount of the curtilage covered by buildings and additions.

Broadly, you need to consider whether buildings and other additions cover more than:

50% OF THE CURTILAGE

excluding the area occupied by the original house.

Existing:

sheds;
garages;
summerhouses;
extensions;
other outbuildings

can therefore matter.

Building It and Using It Are Different Planning Questions

This is an important distinction.

QUESTION ONE

Can you legally build the garden office?

QUESTION TWO

Can you carry on the proposed business activity from it without creating a material planning change?

Compare:

One consultant working alone

Laptop.

Video calls.

No customers.

No employees.

No signage.

with:

Busy commercial operation

Five employees.

Customer visits.

Deliveries.

Business signage.

Traffic.

Parking.

Noise.

The planning implications can be very different.

Certificate of Lawfulness

If there is uncertainty, it may be worth considering a:

CERTIFICATE OF LAWFULNESS

from the local planning authority.

This can provide formal confirmation that the proposed development or use described in the application is lawful.

That can be valuable later when dealing with:

purchasers;
solicitors;
mortgage lenders;
neighbours;
planning enquiries.

Planning Permission and Building Regulations Are Different

Another common misconception is:

“I don’t need planning permission, therefore I don’t need any approvals.”

Not necessarily.

Building Regulations are separate.

Relevant considerations can include:

floor area;
construction;
proximity to boundaries;
electrical installation;
drainage;
sleeping accommodation.

So:

PERMITTED DEVELOPMENT ≠ NO BUILDING REGULATIONS

Adding a Toilet, Kitchen or Shower

Many premium garden offices now offer:

toilets;
sinks;
kitchenettes;
showers;
plumbing.

These can create additional issues involving:

Building Regulations

Drainage

Planning

VAT

Capital allowances

And once a garden room begins to resemble:

SELF-CONTAINED LIVING ACCOMMODATION

rather than an office or incidental outbuilding, the planning analysis can change significantly.

Business Rates

A garden office can potentially become separately assessed for:

BUSINESS RATES

depending upon its nature and use.

Small Business Rate Relief may potentially reduce the actual bill where the relevant conditions are met.

But there is another interesting interaction.

If you argue:

“This is entirely separate commercial business premises.”

for business-rates purposes, that could also be relevant evidence when considering whether the area was used exclusively for business for CGT.

Again:

ONE TAX DECISION CAN AFFECT ANOTHER

Check Your Mortgage

Before constructing the office, check your mortgage terms.

Restrictions may concern:

business use;
commercial occupation;
alterations;
outbuildings;
granting rights to a company.

For a limited company, this becomes particularly relevant if you are considering granting the company formal rights over part of your property.

Check Your Insurance

You should also tell your insurer.

Consider whether the policy covers:

the garden building;
business use;
company-owned equipment;
employees;
clients visiting;
stock;
business liability.

A £30,000 garden office full of computers may need different insurance from a £1,000 garden shed.

What Happens When You Sell Your House?

This is particularly important for company directors.

Suppose Consultancy 4 Business Ltd has paid:

£36,000 INCLUDING VAT

for a permanent office on the director’s land.

Five years later, the director sells their home.

Ask:

Who owns the garden office?

Does it automatically pass to the purchaser?

Has value passed from company to director?

Does the company have a disposal?

Are capital allowance disposal adjustments required?

Does VAT need revisiting?

Does Private Residence Relief fully apply?

What happens to company equipment?

These questions are far easier to address if the original arrangement was properly considered and documented.

What Happens If the Company Closes?

Exactly the same principle applies.

Suppose:

2027

Company spends £30,000 constructing the office.

2031

Company closes.

The permanent building is still sitting in the director’s garden.

What happens to it?

This is why:

EXIT PLANNING SHOULD HAPPEN BEFORE CONSTRUCTION

not four years afterwards.

£30,000 Garden Office – Putting It All Together

Let’s return to Consultancy 4 Business Ltd.

Garden office

£30,000 + £6,000 VAT

Structure – £20,000

Plant and machinery allowances:

Generally no

SBA:

Generally no because situated in residential grounds

Integral features – £5,000

Capital allowances:

Potentially yes

Furniture/equipment – £5,000

Capital allowances:

Potentially yes

VAT – £6,000

Potential recovery:

Depends on VAT status and genuine business use

Private use

Potential consequences for:

VAT + employment tax + CGT

Property ownership

Establish:

What does the company actually own?

Planning

Check:

height + location + coverage + use

Exit

Plan for:

sale + cessation + company closure

15 Questions to Ask Before Building a Garden Office

Who owns the house and garden?
Are you trading through a company or self-employed?
Will the office be permanent or genuinely moveable?
Who will own the completed structure?
If a company is paying, what rights will it have over the property?
Can the builder provide a detailed cost breakdown?
Which elements qualify for capital allowances?
Is SBA actually available?
Is the business VAT registered?
Does it use the Flat Rate Scheme?
How much genuine private use is expected?
Could an employment tax/BIK issue arise?
Could exclusive business use affect Private Residence Relief?
Are planning and Building Regulations satisfied?
What happens when the house is sold or the business stops?

For a limited-company director, if you cannot confidently answer questions 1–5, I would not simply let the company pay the builder and sort out the tax treatment afterwards.

Why This Matters More Than Ever

Garden offices aren’t simply a pandemic-era fad.

ONS reported that 28% of working adults in Great Britain hybrid worked between January and March 2025.

Among people earning £50,000 or more, that rose to 45%.

Home working was also more prevalent amongst self-employed workers than employees.

That puts garden offices firmly on the radar for:

limited-company directors;
consultants;
accountants;
IT professionals;
property professionals;
freelancers;
sole traders;
partnerships;
other home-based businesses.

And when a high-quality garden office can represent an investment of £20,000, £30,000, £40,000 or more, getting the tax treatment right becomes increasingly important.

This isn’t really a question about:

“Can I claim for a garden shed?”

It can be a:

£30,000+ BUSINESS, TAX AND PROPERTY DECISION

Frequently Asked Questions

Can my limited company pay for a garden office?

Potentially yes, but the ownership, employment-tax, VAT, capital-allowance and CGT implications should be considered before construction.

Can a sole trader claim for a garden office?

Potentially for qualifying elements and business costs, but the building structure itself will not simply become an allowable business expense because it is used for the trade.

Can I claim the whole construction cost?

Generally no. The structural element normally does not qualify for ordinary plant and machinery allowances.

Can I claim Structures and Buildings Allowance?

Generally not where the office is within the grounds of a residence.

Can I claim capital allowances on the electrics?

Potentially yes.

What about heating and air conditioning?

These can potentially qualify as integral features.

What about computers and furniture?

These can potentially qualify for plant and machinery allowances.

Can I recover VAT?

Potentially if VAT registered, to the extent the expenditure relates to taxable business activity and subject to the detailed VAT rules.

What if I’m self-employed and use it privately?

Your business tax relief and VAT recovery may need restricting appropriately.

What if I’m a company director and use it privately?

Additional employment tax and Benefit in Kind issues can potentially arise.

Does a garden office have to be temporary?

No. A permanent outbuilding can potentially fall within permitted development.

Is the maximum height 2.5 metres?

The 2.5m overall-height restriction is particularly important where any part of the building is within two metres of a boundary.

Could I lose Private Residence Relief?

Potentially in relation to an area used exclusively for business. Genuine mixed use can produce a different result.

Bicknell Business Advisers’ Garden Office Review

Before you build:

BUSINESS STRUCTURE

Limited company or self-employed?

↓

LAND

Who owns it?

↓

BUILDING

Permanent or moveable?

↓

OWNERSHIP

Who owns the completed office?

↓

CAPITAL ALLOWANCES

Structure vs integral features vs equipment.

↓

VAT

Business use, private use and Flat Rate Scheme.

↓

PERSONAL TAX

BIK for company directors?

Business/private restriction for sole traders?

↓

CGT

Exclusive business use?

↓

PLANNING

Permitted development and business use.

↓

BUILDING REGULATIONS

Separate assessment.

↓

EXIT

What happens when you sell your home or stop trading?

Bicknell Business Advisers’ Advice

The common mistake is thinking:

“I work from there, therefore my business can pay for the whole thing and claim tax relief.”

A garden office can potentially involve:

INCOME TAX OR CORPORATION TAX

↓

CAPITAL ALLOWANCES

↓

VAT

↓

EMPLOYMENT TAX / BENEFIT IN KIND

↓

CAPITAL GAINS TAX

↓

PROPERTY OWNERSHIP

↓

PLANNING

↓

BUSINESS RATES

↓

EXIT TAX CONSEQUENCES

The most important point is:

PLAN BEFORE YOU BUILD

For the self-employed, that means establishing the business/private split and identifying qualifying expenditure.

For a limited-company director, there is the additional question of whether the company is spending its money improving an asset you own personally.

Once £30,000 or £40,000 has been spent, some of those decisions may already have been made for you.

How We Can Help

At Bicknell Business Advisers, we can help company directors and self-employed business owners considering a garden office review:

whether the business should fund the project;
limited company versus self-employed treatment;
permanent building versus moveable pod;
Corporation Tax and Income Tax;
capital allowances;
integral features;
VAT and the Flat Rate Scheme;
private use;
employment tax and Benefit in Kind;
CGT and Private Residence Relief;
ownership arrangements; and
the tax position when the property is sold or the business stops.

Where specialist legal, planning or Building Regulations advice is needed, those issues can be identified before significant expenditure is committed.

You might also find these articles helpful

HMRC Update: New Evidence Rules for £312 Working From Home Allowance (Effective 14 October 2024)

Should Your Limited Company Pay You Rent for a Home Office?

Schedule time with me

About the Author

Steve Bicknell FCMA, CGMA is Managing Director of Bicknell Business Advisers Limited, specialising in property taxation, landlord tax planning, SDLT, Capital Gains Tax and property company structures throughout the UK.