Last updated: 14 October 2026
Can you claim VAT on a new kitchen at home if you use it for business?
Usually only for the business-use share, and only in limited cases. A kitchen in your home is mainly a private, domestic cost, so VAT can’t normally be reclaimed. If you are VAT-registered and genuinely use the kitchen for your business, for example a home baker or caterer making goods for sale, you may reclaim the VAT on the business-use proportion, with a fair and documented basis for the split.
The rule: VAT must relate to business use
VAT on costs is only reclaimable if they are used for your taxable business. Where something is used for both business and private purposes, you can:
- reclaim only the business share of the VAT, or
- for goods such as equipment, reclaim all of it and account for output VAT on private use (the “Lennartz” approach is restricted for land and buildings, so this rarely applies to a kitchen)
For a kitchen built into your home, apportionment is the usual approach.
When a business share may be allowed
- A cake maker or caterer who uses the kitchen to produce goods for sale every week
- A food photographer or recipe developer who uses the kitchen as a studio
- A childminder who prepares meals for the children they look after
In each case, the business use must be real and regular, not occasional.
Example
A VAT-registered home baker spends £18,000 plus £3,600 VAT on a new kitchen. Based on hours of use, 35% is for the business. She may reclaim 35% × £3,600 = £1,260. Keep a log showing how you worked out the 35%.
Separate business equipment is easier
VAT on equipment used only for the business, such as a commercial oven, a mixer or a blast chiller, can normally be reclaimed in full. Consider buying business equipment separately rather than as part of the kitchen refit.
Income tax is different
For income tax, a new domestic kitchen is a capital cost of your home and isn’t usually a business expense, although equipment may qualify for the Annual Investment Allowance. Self-employed people can claim a share of running costs, such as power and water, for business use of the home.
Capital gains tax
Claiming a business share of a kitchen doesn’t usually affect your CGT exemption on your home, as long as the kitchen is also used privately. See working from home and CGT.
Mistakes with home and business costs
Sole traders often reclaim VAT on the whole utility bill when only part relates to the business. Work out a fair business share, such as the proportion of rooms and hours used, and apply it to both the expense and the VAT. Don’t reclaim VAT on council tax or mortgage interest, because none is charged. If you claim simplified home-working expenses at flat rates, you can’t reclaim VAT on top, because there’s no VAT invoice behind the flat rate.
Frequently asked questions
Can a limited company pay for my kitchen?
If the kitchen is in your home and mainly private, a company payment is likely to be a taxable benefit or a dividend. Take advice first.
Is VAT reclaimable if I run cooking classes at home?
A business share may be, if the classes are VATable and regular.
What evidence do I need?
Invoices in your name or the business’s name, and records of the business use.
Does the 5% renovation rate apply?
Only for some empty homes and conversions, not ordinary kitchen refits. See 5% VAT on renovations.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT on home and business costs. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
