Can VAT be Claimed on a New Home Kitchen If Used for Business Purposes?

Q. I Work through My Own Company and the Business is Run from My Home. I Use My Kitchen for Entertaining Clients as well as other Rooms in the House. Can I Claim Back the VAT Charged on Fitting a New Kitchen in My Home on the Basis that it is Used Partly for Business Purposes?

A. The company cannot claim back VAT on an invoice addressed to you personally. If the company has directly paid for the new kitchen in your home, this would amount to a benefit in kind for you, on which you will need to pay income tax and NIC. The company would need to report this benefit to HMRC as part of the annual benefits and expenses declaration, or treat the cost as part of your salary and tax it through the payroll. The cost of entertaining clients is not a deductible expense for the company, and VAT cannot be reclaimed on those costs.


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