gnf_ireland
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I have gone to my accountant with this question, but I would also like some learned wisdom from the AAM community to feed into the discussion.
I am a director of a limited liability company, working in IT (ranging from strategy, due diligence, roadmaps etc). Like many I have been worked flexibly for a number of years, including during the COVID years. However, recently I have moved to a fully virtual model, with very occasional visits to client sites. In some cases, the client is also fully virtual with no office space in Ireland.
Like a lot of people, I have 'surrendered' a room in my house as a dedicated office for the last number of years. This is no longer feasible and the room is needed as a space for the kids. It is the family home after all. So I need to find another 'reasonably private' working location at a reasonable cost to the company.
The idea of using a collaborative working space is not really appealing on the basis of cost and practicality. A standard 'office desk' does not private sufficient privacy to discuss client confidential information on regular virtual meetings, so would need to be more an office model. Based on initial quotes, the cost of this would be ~500 a month or 6k a year [South County Dublin], so a bit on the high side.
The alternative is to place a 'temporary' structure at the back of the garden [size less than planning requirements]. My assumption is the the limited company could pay for this and reclaim VAT, and depreciate it at a standard rate (say 10-12% a year). Once its no longer required, the company could dispose of it [either to a third party or to myself at market value], and handle the tax accordingly. I estimate the cost of this to be around 25k, less ~3k VAT, so net 22k. I expect to use this for ~15 years, so about 1500 a year. This assumes no disposal payment, which of course is unlikely.
Does anyone see anything wrong with the alternative proposal ? I want to stress I am not in any way trying to 'pull a fast one' here, but rather find a reasonable way to accommodate virtual working arrangements, without incurring a significant personal cost. I find the idea that I would personally pay 25k to install a home office in order to claim 3.20 euro a day remote working allowance to be nonsensical. I am sure this type of 'office/workshop' has been commonplace across many professions over the years - I am just not personally aware of associated guidelines.
On a side note - apologies for disappearing from the site over the last few years. Work has been a bit on the crazy side so didn't have time to engage in discussions.
I am a director of a limited liability company, working in IT (ranging from strategy, due diligence, roadmaps etc). Like many I have been worked flexibly for a number of years, including during the COVID years. However, recently I have moved to a fully virtual model, with very occasional visits to client sites. In some cases, the client is also fully virtual with no office space in Ireland.
Like a lot of people, I have 'surrendered' a room in my house as a dedicated office for the last number of years. This is no longer feasible and the room is needed as a space for the kids. It is the family home after all. So I need to find another 'reasonably private' working location at a reasonable cost to the company.
The idea of using a collaborative working space is not really appealing on the basis of cost and practicality. A standard 'office desk' does not private sufficient privacy to discuss client confidential information on regular virtual meetings, so would need to be more an office model. Based on initial quotes, the cost of this would be ~500 a month or 6k a year [South County Dublin], so a bit on the high side.
The alternative is to place a 'temporary' structure at the back of the garden [size less than planning requirements]. My assumption is the the limited company could pay for this and reclaim VAT, and depreciate it at a standard rate (say 10-12% a year). Once its no longer required, the company could dispose of it [either to a third party or to myself at market value], and handle the tax accordingly. I estimate the cost of this to be around 25k, less ~3k VAT, so net 22k. I expect to use this for ~15 years, so about 1500 a year. This assumes no disposal payment, which of course is unlikely.
Does anyone see anything wrong with the alternative proposal ? I want to stress I am not in any way trying to 'pull a fast one' here, but rather find a reasonable way to accommodate virtual working arrangements, without incurring a significant personal cost. I find the idea that I would personally pay 25k to install a home office in order to claim 3.20 euro a day remote working allowance to be nonsensical. I am sure this type of 'office/workshop' has been commonplace across many professions over the years - I am just not personally aware of associated guidelines.
On a side note - apologies for disappearing from the site over the last few years. Work has been a bit on the crazy side so didn't have time to engage in discussions.