Garage conversion - expense?

[Gherkin]

Hi all

Does anyone know if for next years tax I can claim my garage conversion as an expense?

I had the garage converted into a playroom in the summer specifically for childminding, it is internal to the main property but I would say the use of it is 90%+ childminding and less than 10% personal use. Can I claim it and if so how would I do it?

Thanks
Gx

[MrAnchovy]

No, you cannot claim building work. If you had to put in a fire/smoke alarm system you might just get away with that as safety equipment.

However, if you don't have any of your children with you when you are minding you can potentially claim general household expenses (including a proportion of mortgage interest) at a higher rate than the 10% allowed by the childminders' concession. Lots of other threads about this :)

[happyfeet]

What about doors???

I had my garage converted last year. The floor had to be raised and all the walls plastered and a new door and window put in (emergency exit door and safety glass in window)

Because my utility area was part of the garage I had a partition wall built and a lockable door on (to keep children out of there)

I haven't claimed for any building work, or electrical work or plumbing or for the back door or window (which wouldn't be in if it wasn't used for childminding) but I have claimed for the internal door to my utility (for safety because they can't have access to that area) and I've claimed for the flooring, radiator and things such as roller blinds, furniture and accessories for the room.

Is this ok??????

[MrAnchovy]

Buildings is a really complex area, so I'll try and pick out the main bits that apply to you happyfeet.

You can't claim for any building work i.e. floor, walls, roof, ceiling, joinery including doors etc. You can only claim (a proportion) of repairs and maintenance to these items, but replacing an item with one that performs a different purpose (e.g. an ordinary door with a safety glazed door) does not count as maintenance or repair.

You can claim a proportion of plumbing and electrical work under the (relatively) new rules on 'integral features (http://www.hmrc.gov.uk/manuals/camanual/CA22320.htm)'. Note that although that guidance talks about a 'special 10% rate pool', as long as you are below the Annual Investment Allowance limit of £50,000 this year you can claim the whole business use proportion this year.

You would normally be able to claim for carpet or vinyl (but not laminated flooring), blinds and furniture etc. but of course as a childminder you can deduct 10% of your income as wear and tear to cover these, so you can't claim it twice: it will always work out better to claim the wear and tear.

Note that when you end your childminding business, HRMC are entitled to calculate a balancing charge on the 'disposal' value of any assets that you have claimed tax relief on.

[happyfeet]

Buildings is a really complex area, so I'll try and pick out the main bits that apply to you happyfeet.

but replacing an item with one that performs a different purpose (e.g. an ordinary door with a safety glazed door) does not count as maintenance or repair..

Does this mean I can claim the cost of these items as an expense?????


What about the cost of the radiator??

The radiator is turned off at the end of my working day so is in there solely for the purpose when minded children are in the room.

[happyfeet]

Buildings is a really complex area, so I'll try and pick out the main bits that apply to you happyfeet.


You would normally be able to claim for carpet or vinyl (but not laminated flooring)

Is there any particular reason why laminated flooring can't be claimed??

The room is part vinyl and part flooring.

I have a toilet and sink area so that part of the room is an area that gets wet so have vinyl there and flooring for the rest.

A carpet would not be practical when they have paint, glue, play doh, food and potty training in that room!!

I had considered vinyl throughout but it worked out more cost efficient for flooring as it lasts longer.

[MrAnchovy]

Is there any particular reason why laminated flooring can't be claimed??

Yes, it's considered to be part of the building because it is permanently installed. It doesn't matter anyway because if you had used vinyl (or carpet) you couldn't have claimed it because you would lose the 10% wear and tear allowance.

[MrAnchovy]

Does this mean I can claim the cost of these items as an expense?????

No because you are not repairing a broken or worn out item or replacing it with a similar item.


What about the cost of the radiator??

You can claim a proportion (90%+ according to your apportionment) of that - it comes under "A space or water heating system". You can't claim the whole amount because of the element of private use of the space and your REALLY REALLY WANT to have some private use otherwise you become potentially liable for capital gains tax.