Business Advice

The £30k Office Renovation Mistake: A Crawley Guide to Capital Allowances

You’ve just signed the lease on a new office in Crawley. It’s the perfect step up for your growing business. You’ve budgeted £30,000 to make the space your own—new lighting, professional cabling, a smart new kitchen area, and fresh flooring.

The work is completed, you get a single invoice from your contractor for "Office Refurbishment," and you file it away. You’re proud of the new space, but you assume that money is just a "cost of the building" and not something you can claim tax relief on.

Wrong.

This is one of the most common and costly mistakes we see business owners make. You could be missing out on thousands of pounds in tax savings. At Curve Accountancy, we believe it’s our job to find these savings before you even spend the money.

The Big Mistake: "Building Improvements" vs. "Business Assets"

The problem starts with that single invoice. When an accountant just sees "Office Refurbishment," they often have to treat it as a non-deductible "improvement to property."

But hidden inside that £30,000 are dozens of individual assets that do qualify for tax relief. These are known as "embedded capital allowances." In plain English, these are the fixtures and fittings that, while attached to the building, are essential assets for your business to function.

You can claim tax relief on these assets in the same way you would claim for a new laptop or a company van.

The Hidden Gold: What You Can Actually Claim

So, what parts of your £30,000 fit-out qualify? You’d be surprised. It’s far more than just your desks and chairs.

The list of "plant and machinery" that qualifies for capital allowances is extensive and includes items that most people assume are just "part of the building":

Integral Features:

  • Electrical Systems: This is a big one. All the wiring, sockets, and distribution boards.
  • Lighting Systems: All the light fittings (excluding standard bulbs).
  • Air-Conditioning & Ventilation: All the units, ductwork, and controls.
  • Heating & Water Systems: Boilers, radiators, pipework, and water heaters.

Fixtures & Fittings:

  • Carpets & Flooring: Specific types of flooring and carpets.
  • Security & Safety: CCTV systems, intruder alarms, and fire safety systems.
  • Sanitary Ware: The toilets, sinks, and hand dryers in your new washrooms.
  • Kitchen Units: The installed kitchen units and worktops in your staff breakout area.
  • Demountable Partitions: The "moveable" walls used to create offices and meeting rooms.

Things that don't qualify are the "structure" itself—the bricks, permanent walls, ceilings, windows, and doors.

The £30,000 Catch: Why Your Accountant Must Be Involved FIRST

Here’s the catch. Your accountant isn't a builder. We can't tell the difference between a £2,000 electrical job and a £10,000 one just by looking at a single, vague invoice.

To claim these allowances, we need a segregated breakdown of the costs from your contractor.

  • Bad Invoice: "Office Fit-Out... £30,000"
  • Good Invoice:
    • Stud partitioning & painting (Not claimable): £10,000
    • New electrical wiring & lighting (Claimable): £9,000
    • Air-Conditioning unit (Claimable): £5,000
    • Carpets (Claimable): £3,000
    • Kitchen units & plumbing (Claimable): £3,000
    • Total: £30,000

With the good invoice, we can immediately identify £20,000 of qualifying assets.

Real-World Example: A Crawley Business Saving Thousands

Let's look at that good invoice. A Crawley design agency has £20,000 of qualifying assets from their renovation.

Thanks to the Annual Investment Allowance (AIA), the company can deduct 100% of that £20,000 from its profits in the year of the spend.

  • Identified Assets: £20,000
  • Corporation Tax Rate: 25%
  • Tax Saving (25% of £20,000): £5,000

That’s £5,000 in cash, straight back to the business, simply from getting the right invoice and having a proactive accountant who knew to ask for it.

Your First Call Should Be Your Accountant

If you are planning an office move, a renovation, or a fit-out for your new premises in Crawley or anywhere in West Sussex, don't wait until the work is done.

The best time to save money on your renovation is before it begins.

Your first call shouldn't be to the decorator; it should be to your accountant. We can advise you on what to ask your contractor for, how to structure the invoices, and how to ensure you claim every single penny of tax relief you are entitled to.

Thinking about a new office or a refurbishment? Get in touch with us for a chat before you start, and let's make that investment as tax-efficient as possible.

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Chris Irving
Director, Curve Accountancy

What People Say About
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"We have used Curve Accountancy for our Accounts and payroll, from starting up our new company to helping us through the recent pandemic. We are extremely happy with the level of service and support they provide. They are proactive in dealing with any queries and issues; are very flexible in their approach in helping us understand all our accounts and the level of accuracy in dealing with complex payroll especially over the last few years. Nothing is too much bother and we know that they are only a phone call away when we need them. They have been a huge help to our business since we have worked with them. They are a really friendly and professional team and always quick to respond. They really take the stress out of our accounting needs. We regard all members of Curve as friends rather than just our accountants. Thank you John, Flo & Paula"

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"We opened our cleaning business 4 years ago now. We have been using Curve accountants right from the very start, from positive feedback and referrals. We couldn’t be happier with the amount of help we have had from them over the years.  With Diamond Cleaning being both our first business, we have had intense 1-1 meetings regarding, starting up, how we can improve our business, becoming VAT registered, and being the bosses we are today. Chris in particular has been amazing with these talks, and we love his Whiteboard approach, that we often take a picture of at the end of our meetings to refer back to! There quick and speedy response to various calls and emails has been much appreciated, as we know how busy they can be, but always find the time for us! For anyone thinking of using Curve accountants in the future, we highly recommend!"

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"We’ve been using Curve Accountancy for a few years now and would recommend Chris and his team to anyone looking to sort their annual personal and business accounts. They are extremely prompt, very knowledgeable and great on communication. We’ll be using them for many years to come!"

Matt Stephens

Mortgage Heroes Limited

"Chris at Curve Accountancy deals with all of our company and personal tax needs. He is professional and trustworthy and has the backing of a very experienced team behind him. Any question I have is answered straight away without the jargon and is a perfect marriage for my company. I would highly recommend Chris to anyone for their tax needs."

Adam Bateup

Sussex Floor Restoration Limited

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Christian Harris

Hart Country Stores

01293 782800

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