Guidance note
Workplace Menopause Support: A Practical Guide to Business Costs
Creating a menopause-friendly workplace does not have to involve significant cost. Many practical workplace adjustments are inexpensive and, where they are incurred wholly and exclusively for the purposes of the business, the cost will generally be tax deductible.
For VAT-registered businesses, VAT may also be recoverable on qualifying purchases, provided the normal VAT recovery rules are met.
Below are some of the most common accounting and tax questions employers ask.
Can I buy a desk fan through my business?
Where a desk fan is purchased for use in your business premises to improve the working environment for employees, it will generally be an allowable business expense. If your business is VAT registered, you can normally recover the VAT charged, provided the usual VAT recovery rules are met.
- USB desk fans
- Oscillating desk fans
- Quiet office fans
- Tower fans for shared offices
Providing equipment that helps employees work comfortably is no different in principle to purchasing office furniture, ergonomic equipment or other workplace items.
Is air conditioning an allowable business expense?
Air conditioning installed in business premises for the benefit of employees and customers will generally qualify as a business expense. The accounting treatment depends on the nature of the expenditure. Routine servicing and repairs are normally treated as revenue expenditure. A new installation or significant upgrade is more likely to be treated as capital expenditure and may qualify for capital allowances where the relevant conditions are met. Although the accounting treatment differs, both types of expenditure can often qualify for tax relief.
Can I provide cooling products for employees?
Many businesses choose to provide practical items that improve comfort in the workplace. Providing practical workplace equipment is no different in principle to supplying ergonomic chairs, adjustable desks or specialist computer equipment where there is a genuine business purpose. Where these items are purchased for employees in connection with their work, the cost will often be an allowable business expense.
- Desk fans
- Cooling towels
- Reusable water bottles
- Cooling gel packs
- Access to chilled drinking water
Can I reclaim VAT on workplace adjustments?
If your business is VAT registered, you can generally recover VAT on qualifying business purchases where the purchase is for business purposes, VAT has been correctly charged, you hold a valid VAT invoice, and the VAT is recoverable under the normal VAT rules. The same principles apply to menopause-related workplace adjustments as they do to any other legitimate business purchase.
What records should I keep?
Keeping accurate records demonstrates why purchases were made and provides an audit trail should questions arise in the future.
- Purchase invoices.
- VAT receipts.
- Details of the business purpose of the purchase.
- Records of agreed workplace adjustments.
- Copies of any relevant workplace policies.
- Notes of discussions where workplace adjustments have been agreed.
Good record keeping supports both your accounting records and your HR documentation. For a ready-made way to document agreed adjustments, our Workplace Adjustment Agreement template (included in the upcoming HR Forms Pack) provides a consistent, professional record to keep on file.
Typical workplace purchases
The following items will often be appropriate business purchases where they are provided to improve the workplace environment.
| Item | Generally an allowable business expense? | VAT normally recoverable?* |
|---|---|---|
| Desk fan | Yes | Yes |
| Tower fan | Yes | Yes |
| Water cooler | Yes | Yes |
| Air conditioning | Yes | Usually |
| Ergonomic chair | Yes | Yes |
| Sit-stand desk | Yes | Yes |
| Footrest | Yes | Yes |
| Cooling towels | Usually | Usually |
| Cooling cushions | Usually | Usually |
| Reusable water bottles | Usually | Usually |
| Blackout blinds | Usually | Usually |
*Subject to the normal UK tax and VAT rules and the circumstances of each purchase.
Supporting employees is an investment, not a cost
Supporting employees experiencing menopause is not simply about meeting legal responsibilities. Relatively small investments can make a real difference.
- Improve employee wellbeing.
- Reduce sickness absence.
- Improve staff retention.
- Increase productivity.
- Create a more inclusive workplace.
- Demonstrate that your business values and supports its employees.
Often, practical workplace adjustments cost very little compared with the cost of recruiting and training a replacement employee.
Key takeaways
- Many workplace adjustments are relatively inexpensive.
- Business purchases made wholly and exclusively for business purposes are generally tax deductible.
- VAT may normally be recoverable on qualifying purchases if your business is VAT registered.
- Keep invoices, VAT receipts and records of workplace adjustments.
- Supporting employees through menopause can benefit both your workforce and your business.
Disclaimer: This article provides general guidance based on current UK tax legislation and HMRC practice at the time of publication. The correct tax treatment will depend on the facts and circumstances of each business. It should not be relied upon as a substitute for professional advice on a specific situation.
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