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Can I Claim VAT Back on a Garden Office? A UK Guide

  • Writer: Wired Media
    Wired Media
  • 7 days ago
  • 4 min read


If you're planning to install a garden office and run your business from home, it's natural to wonder: Can I claim VAT back on a garden office in the UK?


The good news is — in some cases, yes. However, the rules around VAT recovery on garden offices are nuanced and depend on several key factors, including business structure, intended use, and whether you’re VAT registered.


In this guide, we’ll walk you through everything you need to know about VAT and garden offices — from what's claimable, to what HMRC won’t cover, and how to ensure compliance while maximising your business investment.



Who Can Claim VAT Back on a Garden Office?

To be eligible to reclaim VAT on your garden office, you must:

  • Be VAT registered

  • Use the garden office wholly or substantially for business purposes

  • Ensure your purchase is made in the name of the business (not personally)

  • Maintain clear and accurate records of the expense and usage


If you meet the above, you may be able to reclaim VAT on some or all of the costs associated with your garden office.



What VAT Can You Reclaim?

Item

VAT Reclaimable?

Notes

Design and construction labour

✅ Yes (if 100% business use)

Must be VAT invoiced

Building materials & finishes

✅ Partial or full

Only if business-only usage

Electrical and heating systems

✅ Yes

Claimable under capital allowances too

Office furniture and equipment

✅ Yes

Computers, desks, chairs, etc.

Running costs (utilities, repairs)

✅ Proportional

Apportion between personal and business use

Planning or landscaping costs

❌ No

Not considered directly business-related

If used for mixed purposes

⚠️ Partially

Must calculate % used for work vs personal use

Example: If your garden office is used 80% for business and 20% for personal activities (like a hobby or guest space), you can only reclaim 80% of the VAT.



When You Can’t Reclaim VAT

You cannot reclaim VAT on your garden office if:

  • You are not VAT registered

  • The office is primarily for personal use

  • You are a sole trader using the space for mixed use without clear apportionment

  • The costs relate to landscaping, decking or garden redesign not essential to the office function



VAT Reclaim Example

Let’s say you are a VAT-registered limited company and you commission a garden office for £20,000 + VAT (£24,000 inc. VAT).

  • If used exclusively for business, you could reclaim the full £4,000 VAT.

  • If used 75% for business and 25% for personal, you could reclaim £3,000 VAT (75% of £4,000).

  • Note: This VAT reclaim must be proportionate and justifiable. HMRC may request documentation.



Important Considerations

Ownership Matters

If the company pays for the garden office and reclaims VAT, it becomes a business asset. This may impact Capital Gains Tax (CGT) when selling your home.

Tip: Speak to your accountant about structuring ownership — e.g., via a licence agreement between you and your company.

Mixed-Use Spaces Require Careful Apportionment

Even if a room is used occasionally for personal use (e.g., yoga, guest accommodation), this must be factored into your VAT claim.

HMRC Can Challenge Claims

If your claim seems disproportionate or undocumented, HMRC may investigate and demand repayment. Keep invoices, floor plans, photographs, and usage logs if possible.



What About Sole Traders?

If you’re a sole trader, reclaiming VAT becomes more complex:

  • You must demonstrate business use to a similar standard

  • Personal use significantly reduces the reclaimable VAT

  • HMRC expects clear apportionment — e.g., 6 hours of work per day, 2 hours personal use


You may also find it harder to separate the business asset from your personal home for VAT and CGT purposes.



CS Garden Offices and VAT

At CS Garden Offices, we work with VAT-registered businesses across the UK who are looking to create high-quality, fully insulated garden offices. Our team can provide:

  • VAT invoices for eligible elements of your build

  • Advice on designing the space for exclusive or primary business use

  • Modular designs that support long-term flexibility for your company



FAQs: VAT and Garden Offices

Q: Can I reclaim VAT if the office is used partly for personal activities? Yes — but only the portion that relates to business use. You must apportion the claim fairly and keep clear records.

Q: Is VAT reclaim available for home office conversions inside the house? Only if that area is used exclusively for business. Most domestic refurbishments are not eligible.

Q: Do I need to repay VAT if I later stop using the office for business? If usage changes significantly, you may need to adjust or repay a portion of reclaimed VAT (under the Capital Goods Scheme).



Build a Garden Office That Works for You — and Your Business

At CS Garden Offices, we specialise in beautiful, functional outdoor workspaces built with energy efficiency, comfort, and professional use in mind. If you're VAT registered, we can help structure your build in a way that may support VAT reclaim, improve your working environment, and add value to your property.


Explore our range of Bespoke Garden Offices and design a space that supports your business — and helps make the most of your tax position.

 
 
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