Is building work on private home an allowable expense?

veetwin

Hi all,

I am in the process of setting up a small business as a sole trader. I will be operating from home and need to make a few smallish alterations to allow better access to a shed at the side of my house. I will be employing a paving contractor and someone to fit new gates, total cost hopefully less than €3k.

Can I write this cost off as a business expenditure?

Mods please feel free to move if it's more suited to Accountancy or Taxation

Gloomtastic!

I would say no. In the vast majority of cases, you can't claim your rent/mortgage against expenses so alterations to your home would not be deductible either.

looksee

You also need to be aware that you will significantly affect your house insurance, especially in relation to third party insurance. Your shed will not be covered by your house insurance and depending on its construction you may find it impossible to insure at all.

Dumb Juan

Hi

You might examine the Home Renovation Incentive scheme which if your expenditure was a bit higher could attract tax relief

see www.
.revenue.ie/en/tax/it/reliefs/hri/

Duckett

The HRI is an excellent - and it is addressing the black market operators. You may need to check that the works you have planned fall under the eligible category of "home renovation"

dbran

What does your accountant say?

veetwin

dbran wrote: »

What does your accountant say?

Tbh I forgot to ask him at our last meeting. I suspected it would not be allowable but thought I'd ask here if that's not a problem?

dbran

Hi

No there is no problem but the answer to your question is "maybe". It depends on the circumstances and there is not enough information to provide a proper definitive answer. The only person who can give you an answer is your accountant.

dbran