Is a coworking space membership an allowable business expense for my limited company?

Hi Luna, in most cases yes, a coworking membership passes the wholly and exclusively test, because the company is paying for somewhere to do its business, and it is deductible against corporation tax profits. Hot-desking and open membership plans are the straightforward case; if you pay extra for a dedicated, lockable private office inside the space, the fee is still normally allowable, but make sure the contract is between the coworking provider and your limited company and the company actually pays. What falls inside the claim is the membership fee itself, including the desk, wifi, printing and meeting-room access bundled into it, and the VAT is recoverable if the company is VAT registered and the invoice is addressed to the company. Where HMRC could push back is any obvious personal benefit, such as a gym or spa add-on, so keep any bundled perks proportionate and business-focused. Finally, keep the monthly invoices and the company's bank statements showing payment, as that is the evidence HMRC would ask for in an enquiry.