My client has business premises and a car park to accomodate 40 cars on an industrial estate. There are bird feeding stations on the perimeter and they buy bird seed by 25kg bags to feed the birds. Is this a tax deductable premises expense?
No, there is no business justification to the purchase. But, if the bird seed was poisoned in order to control pests it would be an allowable expense.
That said, they can still put this minor expenditure through the business but just deduct it before calculation of tax.
kind regards,
Shaun.
p.s. I am not saying that they should poison the birds and it's not something that I would ever do.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
No but it would make me less anti use of the poison option! lol
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
No, there is no business justification to the purchase. But, if the bird seed was poisoned in order to control pests it would be an allowable expense.
That said, they can still put this minor expenditure through the business but just deduct it before calculation of tax.
kind regards,
Shaun.
p.s. I am not saying that they should poison the birds and it's not something that I would ever do.
I'm certain you're right, but as a layman (in accounting terms) another thought occurred to me.
Why would *any* expenditure on the car park at all (eg maintenance, line painting, land rental etc) be an allowable expense. Why is it any business of the company what employees do with their cars or how they get to the office (by public transport or whatever) ? What is the business justification for spending any money at all on any part of the car park that isn't specifically reserved for clients who need to visit the company offices?
I would consider it as maintenance of an asset (land and buildings) to prevent them from deterioration and having to be written down.
That the employee's use the carpark is perhaps a secondary consideration behind asset maintenance which would have a direct result on the assets rather than where an employee parks which is only a consideration if the employee's have no alternate way to get into work.
.... If you listen very carefully, somewhere in the distance you can hear the pitter patter of little feet as Bill and Tim run for their keyboards, lol.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
haha Shaun and too right. That's cracking point of the week from Tom. Wholly and necessarily car parking? I don't think so, but remove this thread quickly in case the Revenue hadn't thought of it yet. It's gonna bug me until I find an answer but I need to pitter patter off to get this stuff in the 5 o'clock post. See you over the weekend, no doubt lol Tim :)
So my boss has a unit/warehouse that's used for storage and as a showroom, so I have no problem putting any costs to do with this property and the land through as an expense. He also wants to buy the land next to it and put it through the business. Where would I stand with this? Would there be an oppotunity to put any expenses associated with this through the books even if it serves no real purpose?
Interestingly enough, the quantity of bird seed has now attracted the neighbouring rats and grey squirrels and they are busy clearing up during the day which I suspect is because of the cold weather. Perhaps the company may make more profit if they diversified into an animal sanctuary and a pay and display carpark with picnic area.
Thanks Shaun for your original answer, basically as I had thought but nice to have confirmation.
Free staff parking is currently a tax exempt benefit in kind. This means it could become a taxable benefit in kind should the govt decide in the future it should no longer be exempt. This is why normal maintenance costs for car parking spaces etc are allowable.
Yes, and your statement makes it more so. Consider this. If the Govt made it a taxable benefit then would the maintenance etc not be then allowable?
No more, then does it follow that because it is a tax free BIK, that the upkeep of the car park is incurred in the course of trade.
So it is allowable as the maintenance of an asset that isn't used for the business, but only for the convenicence of the employees. The employees choose to live at a location which demands the use of a vehicle to get to work, but the Govt allows the BIK anyway! All quite unjustified to me but I realise that Budgets are as political as they are practical.
On the issue of vermin, surely now the M16's and C4 should be allowable lol
On the issue of vermin, surely now the M16's and C4 should be allowable lol
Provided that there is no element of personal use! lol.
On the employee choosing where to live is it not more a case of where the employer chooses to locate
The banks have very fancy centrally located flagship offices (all vieing to be in the tallest building) but those are not where the real head offices are (sorry al qaeda, crash into as many city sky scrapers as you like and it'll do didly squat in the UK!). The real hubs are all in country manors that are almost only accessible by helicopter let alone car.
So, the car park is pretty much integral to the ability to run the business.
Back to you Tim.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I think I can safely say that I've never had occasion to stumble onto the tax treatment of helipads. I do distinctly remember though stumbling onto a helipad off Bury New Road.
If the registered office is inaccessible by car then in my considered view, there will be no taxable benefit in kind for parking, free or otherwise.
