In the process of starting your own business? You may be wondering about where your company will be based, home office or office rental? The natural choice for most business owners is to follow the trend and rent an office space. But what are the business cost benefits of a home office vs office rental?
This might be a dedicated office space, where you are responsible for paying the utility bills. Or it might be a shared office, where everything is included in the rent. However, there is one other option that many people rule out.
Working from a home office is becoming an increasingly popular choice for many small business owners. A home office is just a short walk away from your home. Giving you all the comforts of your home and cutting down your commute time. It can also help to significantly improve your work/life balance. So, why do so many people reject this route?
A lack of space is a common reason that people decide not to work from home. Converting a spare bedroom into an office can have a huge impact on your household. Working from the kitchen table can be equally disruptive. This is why so many people are choosing to turn their disused gardens into attractive and cost-effective offices. A wooden garden office is a great way to transform your garden into a versatile part of your work life.
The biggest advantage of creating a home office in your garden is the reduced commute time. Your time is valuable, so if you can cut down your commute to little more than a stroll across the garden, your working day is guaranteed to be a lot more productive. You’ll also save on fuel or transport costs, and it’s much more environmentally friendly.
Another popular reason to build a home office is to take advantage of the tax benefits. Our garden rooms start from as little as £10,000, and we offer flexible finance plans which can help to spread the cost. It’s also fully tax deductible. Why spend money on rent every month when you can spend money increasing the value of your own home? Most home offices are paid off after two years, so you are working rent-free after this time.
The third and final advantage of a home office is that you can spend a lot more time with your family. You’ll also have the advantage of having your own kitchen close by, so you’ll never have to spend money on expensive and disappointing meal deals ever again. And finally, you’ll never miss a package that is due to be delivered! These might seem like tiny benefits, but these small steps can really improve your quality of living and allow you to enjoy life more.
Any equipment that you buy to use within a business is classed as capital allowance. This can be deducted from your profits, making it tax exempt. The purchase cost of your garden office will qualify for this as long as it is considered a moveable object, i.e., not a permanent structure and doesn’t require planning permission to construct. If you’re not sure whether your outside office will qualify, it’s worth consulting an expert or your taxman to double check.
There are certain items that will definitely qualify as capital allowances, such as electrical wiring, pipework for running water, lighting, heating, desk, computers, bookcases, etc. Anything that is equipment to be used for your business can be offset.
If your business is VAT registered, then you can reclaim the VAT on your garden office purchase in your quarterly return.
Get in touch with the SmartSpaces team and start planning the additional space you need for that work life balance you keep promising yourself.