Business storage is useful for storing archived documents, inventory, equipment furniture and more. There are three common financial questions that business owners ask when considering using storage facilities.
Does the business have to pay business rates on a storage unit?
The answer is no. A storage unit is treated like a warehouse, and the storage operator is generally liable to pay any business rates.
Is business storage liable for VAT?
The Finance Act 2012 introduced VAT on storage facility fees. A VAT registered business can claim the VAT back on storage that is only used for business purposes. This means that if you add personal belongings to the stored business items, you cannot claim back the VAT as the facility is not solely being used for the business.
Is business storage tax deductible?
If the storage is used for business purposes only, the storage fees are tax deductible as a business expense. If it is for mixed business and personal use, then it will not qualify as a tax-deductible business expense.
Merseyside Movers & Storers is not qualified to give professional tax advice, so treat the above as informed guidance only. Tax laws can be complex, so you may want to seek advice from an accountant or tax adviser about the tax implications of using business storage.
At Merseyside Movers & Storers, we offer secure storage in the Liverpool area. We’ll pick up any items that you need storing and keep them safe until you need them.
