Aircon for 100% dedicated home office

[Scruff]

I'll throw my thoughts into the hat.

I would suggest that it is allowable, based on the fact that it can be classed as an office expense, and won't require capitalisation. The use case, in my example is that I have a dedicated office in my home, purely for work. The desk, chair, lamp, laptops, monitors, 3 servers, network switches, storage devices, VPN / DNS Servers, carpet protector, are all dedicated to providing my services and the R&D provided MyCo. The heat generated by the electricals when on is substantial (even in winter the heating in the office is off).

The aircon is portable, purely because a built-in, split or ducted systems would not be feasible, due to cost and it would require contstruction work to be undertaken and not practical.

I have no use for an additional portable air-con unit in the rest of my house, since I already have one in my bedroom and the living area downstairs is way too large for any portable unit to be effective.

The feasibility is done on an individual "use-case" basis, so no blanket decision.

[vwdan]

I put mine through last year - I was WFH and it was near unbearable. If I'd rented an office, I'd have done the same and if I rent an office in future I'll take it with me along with my desk and printer.

I can certainly see the different opinions and viewpoints, and maybe it would even depend on who at HMRC looked at it too. But I have to say, it was a complete game changer in terms of productivity.

[vwdan]

I'll throw my thoughts into the hat.

I would suggest that it is allowable, based on the fact that it can be classed as an office expense, and won't require capitalisation. The use case, in my example is that I have a dedicated office in my home, purely for work. The desk, chair, lamp, laptops, monitors, 3 servers, network switches, storage devices, VPN / DNS Servers, carpet protector, are all dedicated to providing my services and the R&D provided MyCo. The heat generated by the electricals when on is substantial (even in winter the heating in the office is off).

Just FYI, I moved all of my lab equipment to be behind a proper electric meter (It's a little DIN mount thing, but it reads kWH - designed for stuff like offices and flats where you want to rebill tenants). I cleared it with my accountant and I claim an expense every month (or more likely when I can be arsed) based on my domestic electric chargers.

[wattaj]

No, I would not claim an air con as an expense. There is already a work from home blanket amount that can be claimed by the contractor on a weekly or monthly basis from the LTD company and is allowable by HMRC. It would be expected that these purchases are made from the funds received from this expense claim.

FTFY.

This is your view; other views are available.

[TheCyclingProgrammer]

No you cannot claim an air con as an expense. There is already a work from home blanket amount that can be claimed by the contractor on a weekly or monthly basis from the LTD company and is allowable by HMRC. It would be expected that these purchases are made from the funds received from this expense claim.

Rubbish. Use of home allowance is not intended to cover office equipment. It’s intended to cover an increase in living expenses like higher energy bills.

When I had my garden office built (which I paid for myself) it came with a portable oil heater included but if it hadn’t (and it needs it in the winter) I wouldn’t have hesitated to pay for one through the business just as the business also paid for the desk, storage, chair, printer, small sofa, stationary and even the plant. If I ever felt like I needed air con or a decent fan for Summer I’d purchase that through the business too.

[PerfectStorm]

Having actually gone through a tax investigation, I will say that this sort of thing really wasn't part of it. Has anyone been asked to justify an expense on an individual item level ever?

[Lance]

Having actually gone through a tax investigation, I will say that this sort of thing really wasn't part of it. Has anyone been asked to justify an expense on an individual item level ever?

Did you have this sort of expense claim in your books?

[Finance Contractor]

FTFY.

This is your view; other views are available.

What has people’s views got to do with it? HMRC doesn’t work on the basis that your opinion supersedes their rules.

Rubbish. Use of home allowance is not intended to cover office equipment. It’s intended to cover an increase in living expenses like higher energy bills.

When I had my garden office built (which I paid for myself) it came with a portable oil heater included but if it hadn’t (and it needs it in the winter) I wouldn’t have hesitated to pay for one through the business just as the business also paid for the desk, storage, chair, printer, small sofa, stationary and even the plant. If I ever felt like I needed air con or a decent fan for Summer I’d purchase that through the business too.

No it is not rubbish. Just because someone is working from home does not mean they can claim expenses to make their own home habitable. A home office by definition is part of the home and does not become a separate dwelling that can be separated from the home just because an individual decides to work from that space.

Just because you would claim doesn’t mean it is an allowable expense or correct to claim. No need to take my word for it. HMRC can be contacted by phone if you want to check with them. But I can tell you their answer in advance - the air conditioning unit does not meet the definition of wholly and exclusively for business because it is operated in an individual’s home. The presumption has been made in this thread that if the unit is based solely in the room that is the home office - that fulfils the requirement of wholly for business use. It does not as the room is not part of the business - it is a part of the individual employee’s private residence.

[BR14]

open the windows ffs.

[wattaj]

What has people’s views got to do with it? HMRC doesn’t work on the basis that your opinion supersedes their rules.

Quite a lot as it happens. There is no definitive list of equipment that can be bought for a company, so one is left to interpret the "wholly, elusively, and necessarily" test. Everyone will have their own interpretation as to what could be defensible if their decision was to be tested.

You have stated your interpretation: "no".

I have stated mine: "maybe".

Others have stated theirs: "yes".

Such is life.