Ltd company allowable expense

katy123

I work from home, i know the office chair is an allowable expense but is a rug allowable for corporation tax purposes? Many thanks.

It's a consultancy business, if that helps

2bFrank

Anything used wholly and exclusively used for your business can be claimed as a business expense.

So an office chair, would make sense as along as you use it just for business. E.G sitting a desk etc. A rug would be very difficult to claim, a rug is more aesthetic rather than functional. However if you have your own commercial office space that is exclusively used for your business then there is nothing wrong with claiming for a rug in my eyes, for that space.

However if you are in a home office, then it could be argued that the rug would not be just for business. Remember that the rules state if a space in your house it just used solely for business purposes then the government expects business rates. Thats why I have a tv and other things in my office to show it is used for other purposes. However because of this, I could not claim for a rug as it would not be exclusively used for business.

However if it is a orthopaedic mat (used for standing desks) or some like that, that has a function then I would say you could claim for that.

Pennywise

katy123 wrote: »

I work from home, i know the office chair is an allowable expense but is a rug allowable for corporation tax purposes? Many thanks.

It's a consultancy business, if that helps

I'd say yes if it was in a separate room/office that you only used for your business use (i.e. no private use, not a spare room for guests nor household storage etc). If it's in a room that is also used for private/household then no. You can't have any duality of purpose.

phill99

2bfrank is right.


The term 'wholly and exclusively' is the key term here. It is very likely that your rug could get side tracked into a bedroom or lounge.


You might fight the tax man with this one.

katy123

Thank you for all the replies. We have carpets in our office and the office chairs legs are digging into the carpet so the rug is to protect the carpet from further damage...strange I know.

phill99

katy123 wrote: »

Thank you for all the replies. We have carpets in our office and the office chairs legs are digging into the carpet so the rug is to protect the carpet from further damage...strange I know.

But you can buy special desk carpet runners to stop the office chairs doing this. A better solution and one that wont be questioned by HMRC