The Bookkeepers.Network (BKN)

Post Info TOPIC: How to account for new 'workshop' built at clients home


Veteran Member

Status: Offline
Posts: 66
Date:
How to account for new 'workshop' built at clients home


Hi,

I have a client who has popped a load of receipts in and stated it was for building a 'workshop' in his garden.

What are HMRC's views on this kind of thing?

Is it allowable and if so should it be capitalised?

TIA



__________________

Toni Fields



Guru

Status: Offline
Posts: 768
Date:

blueeyes wrote:

Hi,

I have a client who has popped a load of receipts in and stated it was for building a 'workshop' in his garden.

What are HMRC's views on this kind of thing?

Is it allowable and if so should it be capitalised?

TIA


Hi Toni

What is this 'workshop' made of ? Can it be moved ? What is inside as in integral features ?

Just a few questions which may help in giving an answer



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 7457
Date:

hi Toni
Can of worms time.

Not enough info tbh.

Sole trader/limited?

Plant or structure? Posh shed or what? What is 'workshop' actually to be used for? Not plant. More often than not, not allowable for tax purposes. Why dont they ask before they build/spend.





__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Whilst this is not an easy read - one to try
www.book-keepers.org.uk/t60947639/capital-allowance/

__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Veteran Member

Status: Offline
Posts: 66
Date:

Thanks for your replies.

He is a sole trader Joiner. It is made of wood and used to store tools and maunfacture things needed for jobs. He mentioned windows.

I really don't think this is a shed in the bottom of the garden kind of shed, not looking at the receipts and invoices anyway.



__________________

Toni Fields



Guru

Status: Offline
Posts: 768
Date:

blueeyes wrote:

Thanks for your replies.

He is a sole trader Joiner. It is made of wood and used to store tools and maunfacture things needed for jobs. He mentioned windows.

I really don't think this is a shed in the bottom of the garden kind of shed, not looking at the receipts and invoices anyway.


Hi Toni

I think Joanne described it well with 'Can of worms'

Almost impossible to give a definitive answer but by the sound of it and to hazard a very rough guess it sounds as if it would be capital expenditure as an outbuilding and no CA, but maybe able to claim for integral features, I have not had a chance to read the link that Joanne provided but it may be worth you looking at CAA2001 starting with section 21 which gives you quite a comprehensive list of what is and what is not allowable for CA.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 2852
Date:

Cheshire wrote:

Whilst this is not an easy read - one to try
www.book-keepers.org.uk/t60947639/capital-allowance/


A magicians shed.

I wanted to have a go at sawing a lady in half once but it wasn't successful. Poor girl was in bits.



__________________

John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Leger wrote:
Cheshire wrote:

Whilst this is not an easy read - one to try
www.book-keepers.org.uk/t60947639/capital-allowance/


A magicians shed.

I wanted to have a go at sawing a lady in half once but it wasn't successful. Poor girl was in bits.


I don't know whether tobiggrinbiggrinornoheehee



__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Capitalise, no cap allowances most likely based on scant info so far, BUT may be able to claim for some of contents if they fall under the plant definitions, but what happens when the guy moves house and inherent tax issues. Consider if claiming it is his business pad that it could incur business rates.
Does he have planning permission. Or building regs check. Business insurance covering shed and contents. Other insurances.

Have a read of case law. Caravans popped into my head, perhaps just cos it's a sunny daywink.



__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Any thoughts after wading through that lot Toni?

I think you should see the building/get a photo or at very least a s description of what has been built in and out and groundworks etc.

Also look at if there is any scope for integral features claim.

Not sure what your quals/skillset is - you may need to consider/buy in some advice on this one.

__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 118
Date:

Cheshire wrote:
Leger wrote:
Cheshire wrote:

Whilst this is not an easy read - one to try
www.book-keepers.org.uk/t60947639/capital-allowance/


A magicians shed.

I wanted to have a go at sawing a lady in half once but it wasn't successful. Poor girl was in bits.


I don't know whether tobiggrinbiggrinornoheehee


Bet yout laughed Joanne, I did

I spoke to a potential new client today who's started to convert her detached garage in to a workshop/display space for her soft furnishing business - quite a large figure was quoted! I think the general bookkeeping work would be good but I've not had any experience of this type of expenditure. Thinking suggesting an accountant might be best



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Guru

Status: Offline
Posts: 768
Date:

Kinbuck wrote:



I spoke to a potential new client today who's started to convert her detached garage in to a workshop/display space for her soft furnishing business - quite a large figure was quoted! I think the general bookkeeping work would be good but I've not had any experience of this type of expenditure. Thinking suggesting an accountant might be best


Hi Janet

Sounds like the structure is already there so as both myself and Joanne suggested above maybe a claim for CA on integral features, might be best to get this sorted before she agrees for any works to be carried out so she is aware of what tax relief she will be entitled to.



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Hi Janet
I would suggest she needs a tax specialist (no I dont mean a CA specialist as they will be claiming for the moon as well!) or an Accountant with appropriate tax specialisms given you are not comfortable with this one.

She needs to have considered the before - planning permission or building regs; impact on business rates, impact on insurances (she will need cover for folk wandering on to her property who have no interest in it!), additional traffic at her house issues (such is asked by the council and the insurance companies) and the rest.

Then there is the after issues - CGT on disposal.

Then there is the CA and expense issue.

I mentioned integral features earlier but Toni doesnt appear to have been on. Great care needs to be taken here as the issue of W&E must still apply and that is where many folk go wrong.





__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 118
Date:

Cheshire wrote:

Hi Janet
I would suggest she needs a tax specialist (no I dont mean a CA specialist as they will be claiming for the moon as well!) or an Accountant with appropriate tax specialisms given you are not comfortable with this one.

She needs to have considered the before - planning permission or building regs; impact on business rates, impact on insurances (she will need cover for folk wandering on to her property who have no interest in it!), additional traffic at her house issues (such is asked by the council and the insurance companies) and the rest.

Then there is the after issues - CGT on disposal.

Then there is the CA and expense issue.

I mentioned integral features earlier but Toni doesnt appear to have been on. Great care needs to be taken here as the issue of W&E must still apply and that is where many folk go wrong.




Thanks Joanne

I'm speaking to them, hopefully by the end of this week, explaining that they need to get advice from an accountant.

W&E?? I'll no doubt kick myself when you tell mehmm



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Master Book-keeper

Status: Offline
Posts: 7457
Date:

Hi Janet
W&E = wholly & exclusively (for the purposes of the business).

__________________

Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 118
Date:

Cheshire wrote:

Hi Janet
W&E = wholly & exclusively (for the purposes of the business).


Thank you Joanne, wouldn't have got that



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

2018 The Bookkeepers Network (BKN). All Rights Reserved. The Bookkeepers Network (BKN) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Bookkeepers Network and BKN are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Bookkeepers Network. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Bookkeepers Network. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookkeepers.network or info@bookcert.co.uk.

Privacy & Cookie Policy