How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4074
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have a salaried job but on occasion do additional pieces

Customer Question

I have a salaried job but on occasion do additional pieces of work which I declare in self assessment.
I am thinking of building an office at the end of the garden. Can I offset any of the costs against the tax on earnings? If so can I only offset it against income after the office is built?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
, I'm Keith and happy to help you with your question.
If this office is of a permanent nature then it would have to be passed through the capital allowance channel. Unfortunately buildings do not attract capital allowances which rather puts a damper on that procedure. Here is the advice from Out-law.com, Pinsent Masons, Solicitors web site:
'Buildings themselves do not usually qualify allowances but they will contain items of plant and machinery such as lifts, heating systems, air conditioning and sanitary fittings which may qualify .'
If the erection is of a temporary nature (eg a garden shed) than you might be able to put its costs through as a business expense, but if you use it storage of garden tools etc the only an appropriate proportion should be claimed. In any event the running costs (heating, lighting etc), or a proportion thereof, would be deductible.
I do hope I have shed some light on your possibilities.
Customer: replied 2 years ago.

I have been looking online and the structure is a ready made wooden one - a fancy shed!

I would also require a concrete slab pouring to lower it on to.

Not sure if it needs planning permission yet.

Does this fit the temporary criteria. If so is it only wooden structure. Also can I only claim it against income generated after it is put up or can i use income now to by the structure and offset that on tax?

Expert:  bigduckontax replied 2 years ago.
I am of the opinion that the shed would be a temporary structure and as everyone knows it would need a concrete slab upon which to rest. The matter of planning permission is outside the scope of this tax advice web site, but fortunately planning restrictions have been eased of late,
I am of the opinion that any expenditure thereon would be allowable against profits as office expenses.
Sorry delay in reply; I am answering from a time zone 7 hours ahead of GMT and I had gone to bed!
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.

Thank you support.

By the by, did you know Roland Dhal wrote all his books in his garden shed. I don't know whether he set off the costs thereof against tax though!