I'd google the shed especially if the cost seemed excessive. A photo of it stuffed with archives or whatever might be reassuring. I wonder if capital allowances will be claimed? Tim
The cost is approx 2.5k, will be used mainly for storage of office paperwork etc and also as a temporary office for the director as location of new office is quite some distance from his home so he'll be working from the shed one or two days per week.
Do you think this cost is excessive?
I guess it will be more of a summer house than a shed perhaps.
I'm smiling as it's gone from storage facility to temporary office in the form of a summer house. I'd keep asking questions. Any attached patio?
On the other hand premises costs will be reduced so it might not raise eyebrows. I'd want to know that office furniture, pc and fax/printer etc had been installed and that future calls were being made from that line.
I would say it's probably average. Mine was about that once I take into account the networking, power heat and insulation as well as build costs. Equally mine is a type of summer house I suppose but kitted out as an office. It opens onto my decking but I don't really see that as an issue, I sometimes work outside on the few nice days we get. Equally as long as it's wholly and exclusively for business the price they pay is irrelevant. We're bookkeepers and accountants not the value police or martin lewis. I have a few client where I cringe when I see what they pay for printer etc, but you can't not process a transaction because they didn't get good value, or paid more than you or I would.
lol@value police. I'm playing the devils advocate as usual because I had one where the costs kept trickling in and my brothers house backed on to theirs. They ended up with a fully serviceable 'granny flat'. I'm curious if it yet has a rateable value if satellite photography has picked it up. But you're right, as long as it's wholly and exclusively.
While I wait his reply... If it does turn out the shed is being used for both business and personal, would it be acceptable for the company to pay 50% and the director, personally, the other 50% of the cost?
This is a VAT registered business also so I'll be looking to offset any VAT on the purchase of said pesky shed
Up to now I think we've presumed that the business doesn't make an zero or exempt supplies and that all normal activities are wholly VAT-able. Have a read of the following link. Providing their supplies are always taxable then number of days business/private might be an acceptable proportion or one based on physical area used for business and that which was used for private purposes.
