Anyone here a Tax Expert - sorry not Horsey

Flibble

Flibble

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Gloucestershire
www.annamason-art.co.uk
If anyone on here knows Tax inside out could they tell me what I should do about this:-

I have built an Art Studio in my Garden so I want to put the cost including materials against my Tax. I have two issues.

The Studio was bought and paid for in 2007/2008 Tax year but not completed until 2008/2009 ie the paving around it.

The total will be under 5k but I dont know wether I can split the cost over several Tax years?

If its too boring for HHO ers you can PM me.
 
Ok 2 problems with that

Firstly its capital - so if 07/08 you can only put 50% against your income and 25% on a writing down basis thereafter

In 08/09 the rules have changed and you could put 100% against your income

However its still capital and would sit on a fixed asset register. There is also the aside issue that you should be paying business rates on the studio and whether its a seperate dwelling etc etc

The other thing you could do is charge yourself rent, heat, light and water. Depending on what is reasonable you could actually end up with a bigger ongoing tax deduction year on year.

However I think it would be worth talking to a practising accountant about this!!!
 
spoke to our accountant on friday about this, if we build an office in the garden for sole use of the business it is an asset and when we sell the house we wil have to pay capital gains against it, he advised no sole business use, so basically if you can prove you only use it sometimes for business and the rest of the time its a summer house or something you can claim a portion of expenese but not the actual buildings costs, same goes for current rooms in your house
 
If this is a building structure it is not allowable anyway.

Fixtures and fittings such as electrics, shelving etc need to be capitalised and capital allowances claimed. This can be done on the invoice date.

There are quite a few issues with this as Cotswold mentions and you really need to speak to an accountant.
 
you can offset a portion of your eletricity/gas/council tax/ etc - it all helps - look on the inland revenue website or call their helpline - they have been known to be helpful on occasion
tongue.gif
 
In that case you'd be better off charging yourself £300 per month and claiming back £3.6k per annum (if they want a break down say its £500 per month, but you are disallowing 40% for private use)

As its only 5k I am assuming its a temporary structure (shed) which would be fully allowable, but its probably better to go down the rent route in your case.
 
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