Small Limited - can I get a treadmill as a company expense?

[hornetrider]

I am an IT contractor with my own Limited, the OH is my Company Secretary, my home the registered office of the business... the usual set-up.

Is it possible to get a treadmill as a business expense? I would have thought so, given larger companies etc provide gyms for their employees.

Thoughts?

[Eric Mc]

No.

It fails the "Wolly and exclusively for the purpose of the trade" test.

[Mr POD]

Could you lease it under the 'staff development and motivation' Budget, along with a Trip to Go ape ?

[Eric Mc]

You can do what you like - but you won't get any tax relief on it.

[hornetrider]

Eric Mc said:

No.

It fails the "Wolly and exclusively for the purpose of the trade" test.

Interesting, and thanks for the quick response.

I used to work for a major employer who provided a massive gym for employees. Presumably the equipment was bought with company funds VAT free? How does my situation differ?

[Eric Mc]

How do you know they were claiming Input VAT back on these items?

How do you lnow they were getting tax relief on the cost of such equipment.

There is the possibility that they might have been able to make some VAT and tax claims. However, the Revenue aren't mugs - and they do recognise that there are differences in the circumstances of an employer with a bona fide office premises where staff work during office hours and a small one man band limited company based in the director's domestic residence.

The "wholly and exclusively" test is the fundamental test you must always apply in deciding whether an expense or capital cost is allowable against taxable business profits.

[hornetrider]

Eric Mc said:

How do you know they were claiming Input VAT back on these items?

How do you lnow they were getting tax relief on the cost of such equipment.

There is the possibility that they might have been able to make some VAT and tax claims.

Well obviously I don't know, I just presumed that would be how it was done. I thought VAT could be claimed back on all company related expenses, and that all company expenditure comes out of company revenues before corporation tax is calculated.

But then, I'm no accountant and pay someone to do all of that for me!

Cheers for the advice Eric.

[Eric Mc]

Businesses often buy things with no intention to claim back any sort of tax relief. Having a well motivated and looked after staff can be far more beneficial profit wise than getting some tax relief. Obviously, if you can combine the two - even better.

[jacobyte]

Just buy a bike under the "bike to work" scheme, plus a turbo trainer as a "safety accessory", and hey presto you have an exercise bike.

Good enough?

[stimmers]

hornetrider said:

I am an IT contractor with my own Limited, the OH is my Company Secretary, my home the registered office of the business... the usual set-up.

Is it possible to get a treadmill as a business expense? I would have thought so, given larger companies etc provide gyms for their employees.

Thoughts?

DOH !

[hornetrider]

stimmers said:

hornetrider said:

I am an IT contractor with my own Limited, the OH is my Company Secretary, my home the registered office of the business... the usual set-up.

Is it possible to get a treadmill as a business expense? I would have thought so, given larger companies etc provide gyms for their employees.

Thoughts?

DOH !

Er, thanks for yet another high quality contribution

[spikeyhead]

hornetrider said:

stimmers said:

hornetrider said:

I am an IT contractor with my own Limited, the OH is my Company Secretary, my home the registered office of the business... the usual set-up.

Is it possible to get a treadmill as a business expense? I would have thought so, given larger companies etc provide gyms for their employees.

Thoughts?

DOH !

Er, thanks for yet another high quality contribution

I actually think that Stimmers' contribution was more sensible than the OP in asking the question.

[stimmers]

spikeyhead said:

hornetrider said:

stimmers said:

hornetrider said:

I am an IT contractor with my own Limited, the OH is my Company Secretary, my home the registered office of the business... the usual set-up.

Is it possible to get a treadmill as a business expense? I would have thought so, given larger companies etc provide gyms for their employees.

Thoughts?

DOH !

Er, thanks for yet another high quality contribution

I actually think that Stimmers' contribution was more sensible than the OP in asking the question.

Seems we share that opinion