Can my garden office be claimed as a business expense?

Can my garden office be claimed as a business expense?

Are you considering the addition of a garden office to help you work from home? This is a great idea for many reasons. You can have privacy and quiet to stay focused and productive, while keeping disruptions from family to a minimum. And the garden office can even be used for other purposes, such as a spare bedroom for guests and more. 


Is my garden building claimable as a business expense? 

It’s not possible to fully deduct the garden office as a business cost. However, you can deduct the fixtures, fittings, office furniture, and more. 


What items of the build are claimable? You can claim for certain items within the building and this is where it is important to ensure that you have your invoice itemised correctly prior to the work being completed. 

Electrics – power, lighting, CCTV 

Thermal insulation of the building Water heating system, a powered system of ventilation, air cooling or air purification 

Kitchen equipment and fittings 

Washbasins/sinks/sanitary ware 

Furniture and furnishings 

Sound insulation 

Computer, telecommunication and surveillance systems including their specific wiring


Can I reclaim VAT paid? 

If you’re VAT registered, VAT incurred on the cost of the structure itself or any furnishings or furniture can be reclaimed if it is solely used for business. VAT can also be reclaimed on the ongoing running costs. You must ensure there is a VAT invoice addressed to the business to support any claim, as per the usual VAT rules. 


Is capital gains tax an issue? 

This is only a future issue on sale of your home if you are building a brick type new build rather than a more ‘temporary structure’ such as a ‘posh shed’. Our advice would be to speak with your tax advisor prior to construction. 


Are there any other issues? 

As the structure will be separate from your home, local councils may seek to charge business rates – check with your council. Planning permission is also an issue that is best to discuss with your local planning department before undertaking work.