We have recently moved home and purchased garden room through personal funds but we are intending to use it for business purposes - i.e. office and storage area. We are currently fitting the room out (insulation, electrics, decorating etc) but I am not sure how to categorise the purchases - there doesn’t seem to be anything on the drop down menu for this kind of thing.
Hello @BlueFlag
If there is no suitable standard code you can add your own nominal code.
You need to be aware that if you claim business expenses for a “room” in your house that’s used entirely for business purposes, that if/when you come to sell, that portion of the house will not be eligible for principal private residence relief for the purposes of capital gains tax.
The initial fittings such as shelves, furniture, electrical wiring etc. are capital expenses, so use a suitable code in fixed assets, e.g. furniture & fittings or building improvements (set one up if there isn’t one) and you can claim capital allowances on them. Decorating and soft furnishings can be claimed as an expense, using a code like repairs & maintenance.