Jennifer Adams considers the tax implications for a self-employed individual of building a purpose-built office at home.
Many of the self-employed already work from home, but the pandemic has brought such flexibility into potential reality for employees as well.
Where existing space does not allow a room to be set aside as an office, one may be created (e.g., by building an extension, converting a loft or building a garden room). Garden offices can range from as little as £1,000 for a DIY-style cabin with little or no insulation, to upwards of £30,000 for 'state of the art' buildings.
Whether the building is a DIY construction or a ready-made office, the expenditure on buildings, foundations, and structure is not tax-deductible as either an expense