Did you know that over half of all small businesses in the UK are run from home. With the Covid-19 Pandemic this figure is already rapidly increasing.
The benefits of running a business from home are obvious.
1) No rent to pay for premises,
2) No commuting expenses,
3) More time at home,
4) A better work life balance,
5) Control over your environment.
Although there is an initial cost for your garden building, this can be offset by no longer having to pay rent for your premises. Below is an example of how the costs compare.
A typical loan of £20,000 with an APR of 3% would be monthly repayments of £359.01 over 5 years.
If your rental of premises were £500 per month, this would be a saving of £140.99 per month!
In addition to this, savings can be made on commuting too!
For example, commuting costs of £25 / week would be additional saving of £100 per month!
As well as saving money, it is well reported that working from home, especially in a garden building not only adds value to your home but also gives a better work-life balance.
Did you know that your garden building may qualify for tax and business benefits too?
To be eligible for tax and business rates your garden building must be a ‘moveable object’ and not a permanent structure that requires planning permission. In such cases you may be able to offset the cost of your building against corporation tax.
In addition to this, if your business is VAT registered you will be able to claim the VAT from the purchase of your garden building in your business’s quarterly VAT return.
Please note that the above is merely provided as guidance and every case is different and further advice should be sought e.g. a trained accountant or financial adviser.