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Silly Digits


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Capital Allowance
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Hi all

I have a client, sole trader

They work from home, and want to claim a percentage of new path/garden landscaping to the work premises (outside building).

As this is not plant & machinery I don't think I can claim 100% AIA.

Any advise, I am presuming this should be a capital expense rather than an expense.

Many thanks

 

 

 



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Artois


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How was the outside building treated originally? and does the path only serve this building?

 



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Doug

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


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The path does not just go to the business premises. They are only claiming a percentage of the total cost. They just claim for use of home expenses

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Artois


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I think you may struggle getting HMRC to agree to the cost in the event of an enquiry, if the path had been laid specifically for access to the outside building then it may well have been different but I would still be looking at capital rather than revenue.

That's just my opinion but others may differ.



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Doug

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


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Artois wrote:

 

How was the outside building treated originally? 

 

 Pretty fundamental and cannot see it's been answered.

 

 



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

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

You should check out answers with reference to the legal position
Cheshire


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How is this W&E?

What is the business 'premise'. What does it store? Is it used for something else? Far too many questions to answer this one.

So best place to start......Under what legislation will you be putting any of this through the business in any way?


Pretty sure he will lose more in PRR than this could possibly gain him. Has he been talking to his mates down the pub?

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

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

You should check out answers with reference to the legal position
Silly Digits


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Thank you all for your replies. Has been very helpful.

I will give HMRC a call as not a straight forward one.



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Cheshire


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It is very straightforward with ALL the facts.

WARNING.

Please please do NOT take accounting and tax advice, especially the latter from a phone call with HMRC.

It will not hold up in an investigation (they say so themselves!), besides their phone answering staff do NOT have tax expertise and they interpret things how they want to, Ie in their favour as opposed to by the letter of the law.

Also with this type of query the clients tax calculation follows the accounting process. So how can HMRC possibly advise on the accounting issue?!!

nB
This is said on here countless times and also on Aweb where a number of highly qualified tax advisers contribute regulary.



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

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

You should check out answers with reference to the legal position
Cheshire


Master Book-keeper

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Oh and as if by magic - what timing! A relevant post on the matter.

The first responder, Steve, is a tax specialiast (Manchester based) and is an ex HMRC inspector.

www.accountingweb.co.uk/any-answers/can-we-rely-upon-the-guidance-in-hmrc-manuals-etc

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

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

You should check out answers with reference to the legal position
Casu


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Posts: 359
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Silly Digits wrote:

Thank you all for your replies. Has been very helpful.

I will give HMRC a call as not a straight forward one.

 If this is beyond your expertise what does your PII cover say about completing this work? Or your prof body?   Should you not consider passing this one on or buying in a tax expert? 



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Caron
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