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This will firstly depend on the type of fit out that’s needed. You may have heard the terms ‘shell and core’, ‘category A’ and ‘category B’:
We offer both types of fit out, but taking an office from category A to category B is the most common.
The cost of this depends on a number of variables, not least the size of the office, the number of employees occupying it, the location and the level of refurbishment that’s required.
For example, if the installation were to include the flooring, ceiling, lighting and two meeting rooms, a typical cost could be £20 per square foot. But if furniture, fittings and equipment (known in the trade as FF&E) are also required, then the cost would go up accordingly.
See our page on typical costs of an office fit out for further information.
As a rule of thumb, office furniture of a reasonable standard typically costs £550 per head, not including meeting rooms or breakout areas.
Yes. Fixtures, fittings and furnishings are all eligible for capital allowances, which is expenditure eligible for full tax relief in the year of purchase. Currently there is an annual investment allowance (AIA) of £200,000 and 18% tax relief is available for expenditure over and above the £200,000. So, for example, if your company were to invest in a £500,000 fit out, you could claim AIA on £200,000 for integral features and fixtures in the first year, then spread the remaining AIA claim over the next few financial years, putting it through your company’s profit and loss account.
These tax allowances apply even if payment is spread over a number of years.
So, some examples:
In most cases you can deduct the full cost of these items from your profits before tax using AIA. You can find out what does and doesn’t count as plant and machinery on the government’s website, but essentially you could be eligible to claim for all or part of the cost of an office fit out.
Yes – you don’t have to use cash or bank facilities to fund your project – an alternative could be to lease it. Leasing is a tax-efficient and cost-effective approach to achieving the ideal workspace while retaining capital in your business.
We work in partnership with Plus Finance to offer customised finance packages to businesses needing to buy furniture and refurbish or equip their working environments, whether brand new or as an upgrade.
The benefits of leasing your office fit out project include: