Yes, your limited company can purchase an outdoor storage unit to store business-owned equipment. Here are some key points to consider:
Ownership and Usage: As long as the equipment stored in the unit is owned by the business, it is suitable to justify this purchase as a business expense. The storage unit itself will also be considered a business asset.
Tax Implications: The cost of the storage unit can be claimed as a capital allowance, allowing your company to benefit from tax deductions. Remember to keep detailed records of the purchase and its intended business use.
Location and Accessibility: The location of the outdoor storage unit should be accessible for business operations and maintaining equipment. Its proximity to your registered business premises could be a factor considered by tax authorities in assessing the legitimacy of its business use.
Insurance and Security: Ensure that the storage unit and its contents are adequately insured. Invest in security measures to prevent theft or damage to the equipment.
Regulatory Compliance: Check local regulations regarding outdoor storage units, as there may be zoning restrictions or permits required, depending on the location.
Impact on Directors’ Benefits: Be mindful that if the unit is perceived to serve personal benefits more than business needs, it may attract scrutiny and potential classification as a benefit in kind, potentially leading to additional taxation.
Consulting with a financial advisor or accountant is advisable to tailor these considerations to your specific situation and ensure compliance with all relevant tax laws and regulations.