Hello, I was wondering if anyone can help:
I have a client who is sole director/shareholder of a ltd co. She works from home in a room used only for business.
She has spent about £5K in the past year on refurbishment of this room, and I am struggling to find out whether any or all of the cost could be charged to the business.
I haven't been able to find a clear answer to this trawling through HMRC's guidance.
Any help greatly appreciated!
UPDATE: after more research it is becoming clearer that this would not be allowable at all.
E.g. from https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim01474 ref what costs can be reimbursed says:
"The additional household costs must be reasonable and must be incurred in carrying out the duties. This excludes costs that would be the same whether or not the employee works at home, for example mortgage interest, rent, council tax or water rates. It also excludes expenses that put the employee into a position to work at home, for example building alterations or the cost of furniture or office equipment.
Edited at 26 Jun 2019 05:38 PM GMT