Is Business Storage Tax Deductible In The UK?
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Yes, business storage is tax deductible in the UK, as long as the storage space is only used for business purposes.
If you’re renting storage by-the-box, a storage unit or a warehouse in the UK, this expense can be deducted, lowering your taxable income.
Business storage can be a great option for any type of business looking to maximise their storage space - from ecommerce companies storing inventory to restaurants needing to store catering equipment.
If you’re looking for flexible, tax-deductible and affordable storage solutions for your business, we can help. At The Box Co., our business storage solutions are designed to be totally flexible to your needs.
Store as little or as much as you need and only pay for what you store, with solutions starting from just £3.56 per box, per month.
Get a quote today!
When Is Business Storage Tax Deductible In The UK?
For business storage to be tax-deductible in the UK, it has to meet the following criteria:
Exclusively For Business Purposes
If you’re using a storage unit or self-storage, the unit or box must contain business related items only for it to be tax-deductible. For example, if you’re using a storage unit to store both business items and personal items, this would not be valid for tax deduction.
Allowable Costs
Allowable costs for business storage tax deduction include things like rental fees, insurance and any additional utility fees for the storage facility. Beyond that, you may need to check if the cost counts as tax-deductible to avoid getting caught out.
Careful Documentation
To claim a tax deduction on business storage in the UK, you'll need to be able to present detailed records including invoices and the storage contract (including any changes or storage contract pauses) to show exactly how much you paid and how long you were storing your business items.
Any inventory documents that show the items you were storing can confirm that business items were being stored and could support your claim.
Relevant For Your Sector
Business expenses should be something strictly necessary and common for your sector. In other words, your company should be able to justify why they need business storage. For example, many businesses rely on external storage to help their businesses stay organised and efficient, such as storing ecommerce goods, or storage for restaurants to maximise kitchen space.
Claimable VAT
If you are VAT-registered in the UK, and the storage facility charges VAT, it’s possible that you could also claim this back and reduce expenses even further.
Payments From A Business Bank Account
Any payments made for business storage should be made from a legitimate business bank account, rather than a personal account. Companies should take care to keep all invoices in case of a tax audit.
Which Types Of Business Storage Are Tax Deductible In The UK?
Storage By-The-Box
If you’re using storage by-the-box solutions, this will be tax-deductible as long as you’re able to show that the storage is being used exclusively for business storage. This is true both for bigger companies and for self-employed individuals.
Home Storage
Home storage is a bit of a grey area when it comes to tax deductions. If you run a small business or keep inventory at home, you could claim tax deductions if you have a designated area for business storage - but this may be difficult to demonstrate.
To claim tax deductions on home storage, you need to be able to prove that the storage area is consistently used for business purposes and is clearly separate from any personal areas. Your home should also be listed as your main business address.
As with any type of business storage tax deductions, all invoices should be carefully recorded to support your claim.
Mixing business storage and personal space can lead to unnecessary complications when it comes to taxes, not to mention causing mess, inefficiency and disorganisation for your business. We’d always recommend opting for external business storage.
With solutions starting from just £3.56 per box, per month, The Box Co. makes it affordable for any business wanting to keep their operations organised and efficient. Contact us today for a quote!
Storage Units For Business
Storage units can be a practical, tax-deductible solution for businesses needing a secure facility to store their business items.
For tax deductions, companies can claim on the cost of rent for the storage unit, utility costs and any relevant equipment (such as hiring a man with a van). The storage unit will be tax-deductible as long as it is used for business storage the majority of the time and you can demonstrate that.
How To Claim Tax Deductions For Business Storage In The UK
You can claim tax deductions for your business storage by:
Only Using The Storage Solution For Business Purposes
While storage can be used for all kinds of personal uses, such as storage between rentals or storage during renovations, the storage must only be used for business purposes in order for it to be tax-deductible. Holding onto inventory lists may be helpful in demonstrating that you were using the storage space for business purposes.
Keeping Accurate Records Of Everything
In order to claim business storage expenses on your taxes, you’ll need to be able to show a detailed record of invoices, receipts or any contracts signed with the storage facility.
Claiming On All Aspects Of The Business Storage
Beyond the cost of renting a storage unit, there may be associated costs that you can claim for tax purposes such as insurance for storage, utility fees or transportation costs.
Tax-Deductible Business Storage With The Box Co.
If you’re looking for flexible, affordable business storage solutions that you can claim back on tax, we can help!
Whatever your business needs, we have a storage solution to suit your needs. Whether you need short-term storage or long-term storage, our solutions start from just £3.56 per box, per week. And the best part, you can claim it back on your taxes!
Contact us today to find the best business storage solution to suit your needs.
