Organising and managing an office refit out comes with a long list of ‘to-dos’ and one thing to take into consideration is the tax relief opportunities that may be available. If there’s an opportunity to offset these costs, you are likely to want to do as much as you can to benefit from it.
What should you consider?
A large amount of your office fit refit costs could be eligible for 100% tax relief against your taxable profits in the year they were incurred. It is prudent to seek advice prior to any spending to ascertain where you could benefit from tax relief. This will ensure that tax relief is maximised by structuring the fit out in the most tax advantageous way. Keeping detailed costings from your office fit out also means that every potential £1 of tax relief can be identified.
For example, if you are considering partitioning off separate offices within your building space, tax relief can be created simply by ensuring that the partitioning is movable and not fixed in place.
What’s available for tax relief?
Tax relief isn’t just available on the items you would expect, such as office furniture, but also on electrical and air conditioning systems under the relatively new integral features rules.
It may be that you are considering an office refit on a property that you have recently purchased, in which case there may be further tax reliefs available, which are often overlooked.
What are ‘integral features’?
It’s likely that on purchasing a building, you will have purchased along with it ‘integral features’. These are items such as water and electrical systems.
The rules concerning this are complex but, dependent on the facts of each case, it’s likely that some tax relief, and potentially a lot, will be available for the cost of the integral features that would have been included in the cost price of the building, along with any other fixtures and fittings that may have been included in the sale.
If this type of relief has not been identified and claimed at the time of a property purchase, all is not lost, there is no time limit for claiming the relief.
How can I make it as easy as possible?
The process can be complicated and confusing, so it’s always best to use the knowledge and expertise of an accountancy firm such as ourselves as we know what elements you can gain tax relief on. With help and advice, you can make the right decisions that will not only result in an impressive office design but also get the most out of your tax planning and any budget you have allocated to complete the project.