Storage units

[Imagine]

I've got a small storage room built into the side of my house (a lucky by product of adapting a room for my daughter) and it's 9ft x 6ft (54sq ft). That's carrying 4 PAs, 3 photobooths, 2 booths and all of the playout and lighting kit. It does have the occasional issue with mildew because it's a small space without a lot of ventilation, so I run a small dehumidifier in there 24x7 and it seems to do the trick.

Julian

Now this is something I've often pondered, and could now be in a position to do something about (mainly because there's no building society ownership of the house anymore )

I have a garage full of junk. It has a leaky asbestos roof, it's not fit for storing anything in. And yet...it's attached to the side of the house...with an electric supply.

I need to get around to getting quotes on waterproofing it and adding some sort of security system, and then work out a. whether I can insure the kit in it (they were dubious last time I asked due to the flat roof) and b. whether it's actually cost effective to do so.

But, as much as it's an ideal situation without having to do a 20 mile round trip to my current storage facility, there are also HMRC implications to consider as far as I understand things. Because it's part of the house, the business can't pay the full amount of the conversion because it could be used for my own purposes as well as for the business. So is it a case of doing it out of my own money and then charging the business "rent"?

Hmmm....food for thought...

[DeckstarDeluxe]

Now this is something I've often pondered, and could now be in a position to do something about (mainly because there's no building society ownership of the house anymore )

I have a garage full of junk. It has a leaky asbestos roof, it's not fit for storing anything in. And yet...it's attached to the side of the house...with an electric supply.

I need to get around to getting quotes on waterproofing it and adding some sort of security system, and then work out a. whether I can insure the kit in it (they were dubious last time I asked due to the flat roof) and b. whether it's actually cost effective to do so.

But, as much as it's an ideal situation without having to do a 20 mile round trip to my current storage facility, there are also HMRC implications to consider as far as I understand things. Because it's part of the house, the business can't pay the full amount of the conversion because it could be used for my own purposes as well as for the business. So is it a case of doing it out of my own money and then charging the business "rent"?

Hmmm....food for thought...

Seems very simple. Spend that money you're paying per month on getting the garage up to a fit and proper condition. Improves value of the house, makes life easier for you and you'll recoup over time a fair amount of the outlay for doing so. Check with an accountant about if it's worth putting it through as an expense as I believe you could come undone by capital gains in the long run.

[Imagine]

Check with an accountant about if it's worth putting it through as an expense as I believe you could come undone by capital gains in the long run.

That was my thinking as well (I'll be seeing the bean counter in the next couple of weeks anyway)
.
For the couple of grand it's going to cost to get the garage up to scratch, and the fact that as of 10 mins ago my storage costs have gone from £125 per month to £132 (increased business costs blah-blah-blah), it'll pay itself back in under two years.

[Excalibur]

For the couple of grand it's going to cost to get the garage up to scratch,

it'll pay itself back in under two years.

Pay itself back, yes.

Two years?


Joking apart, it's a no brainer. Get it done, and remember to insulate the roof as much as possible.

[DJ Jules]

But, as much as it's an ideal situation without having to do a 20 mile round trip to my current storage facility, there are also HMRC implications to consider as far as I understand things. Because it's part of the house, the business can't pay the full amount of the conversion because it could be used for my own purposes as well as for the business. So is it a case of doing it out of my own money and then charging the business "rent"?

Hmmm....food for thought...

I've looked into this a number of times over the years and it gets really complicated. If part of your property is 'owned' by your business or used exclusively for the business then it can be considered tax deductable. However it may require rezoning through planning and can also attract business rates!!

There's already a tax deduction available for using your home as an office and you can reclaim part of the broadband bill as well. Going beyond that can get complicated but, as a sole trader, you can choose how complicated you want to make it. If you're limited then it's easier to rent a unit in the businesses name than get into the complexities of using space at home, especially if you have a mortgage!!

It's actually one of the reasons I haven't gone limited.

Julian

[DeckstarDeluxe]

Pay itself back, yes.

Two years?

Let the guy dream even if it's just for a moment Peter

[Excalibur]

Let the guy dream even if it's just for a moment Peter

Neil, before materials prices went through the stratosphere, I stopped counting what mine had cost! All materials bought trade, a lot of favours called in, and all labour mine.

I genuinely hope Wayne can do it for a lot less than £2k, but my materials costs exceeded that! And just wait till he gets a quote from Wyatt Earp Builders.


I'm no accountant, but I agree totally with Julian, just take the financial hit to build it, and claim back what you can, as you go on. Don't get greedy.

[ppentertainments]

A BIG bonus for renting storage for me as opposed to storing in garage etc is maintaining a healthy work/life balance

For me, the amount I pay for storage is worth it just to get my work equipment out my home (even though it used to stay in the garage)

There’s no better feeling either than driving home at the end of the night with an empty van Lol

If I could justify it I’d have an industrial unit with an office to totally rid my home of anything business

[Excalibur]

A BIG bonus for renting storage for me as opposed to storing in garage etc is maintaining a healthy work/life balance

For me, the amount I pay for storage is worth it just to get my work equipment out my home (even though it used to stay in the garage)

There’s no better feeling either than driving home at the end of the night with an empty van Lol

If I could justify it I’d have an industrial unit with an office to totally rid my home of anything business

And to balance things up, I hold a view totally divergent from Chris. Doesn't mean I'm right, of course. ( Although it is undoubtedly a very rare state of affairs).

[Imagine]

And to balance things up, I hold a view totally divergent from Chris. Doesn't mean I'm right, of course. ( Although it is undoubtedly a very rare state of affairs).

Aaaand I'm sat on the fence (says he that's sitting in the dining room next to a newly created kids show which goes up in under 15 minutes).

My history is that I used to be a software engineer. Anywhere I could plug a laptop in, I could work. It actually caused proper burnouts on a couple of occasions (those that have experienced that particular phenomenon will know where I'm coming from), so I've always liked to avoid having the kit at home (because it's work and I don't like work 24/7 because it's not good for you). Out of sight is out of mind...

BUT...I do this for a living now. This is what allows me to have butter AND jam on my toast (I like to indulge). Business costs are EVERYTHING from where I'm sitting, especially with costs for everything going up (I still don't understand the price rise in storage from £80 in 2017 to £132 today). Seeing the number of units they've got and the minimal staff and a very tiny office, I can only presume a little jumping on of bandwagons is going on here.

For previous comments...I have no mortgage (yippee!!! no complications there), I'm a sole trader so no complications there either, and AS a sole trader, I'm actually storing my own property (similar to the van insurance in transporting stuff that I personally own), so no planning issues either.

Anyhoo....the cost benefits at the moment FAR outweigh anything else. I'm going to be paying an ever increasing storage cost at my current location with the associated costs of diesel and time to get there and back, and with no power to test stuff to boot...until I stop doing this. Yet if I convert the garage (cost unknown at the moment), I'll be storing the kit rent free, with power, a kettle, toilet, testing facilities, no travel.....the pros are endless.

The only "con" (and actually the reason I've never stored the kit at home in the past) is security. I feel that should I get the conversion done, a proper alarm contract will be in order to satisfy the slippery insurance people in case of theft