boring boaters !!!

[Guest]

Why is it that so many fantastic boats never seem to leave the marina .
I always thought the idea was to travel ,you know BOAT WATER TRAVEL !!!
Someone please explain why
Mick

 

[DepSol]

They are used as a company tax dodge!! Instead of showing 750,000k profit the company will buy a boat!!!

 

[pongo]

Alot of people seem to want a large boat (show off) but do not know how or want to use them for the purpose intended

 

[Guest]

Unfortunately, that won't do sir. If you have 700k profit and spend it on a boat, you have a boat worth 700k and tax payable just the same. It's for this reason that you may see boats called General Expenses or Office Equipment. More likely possibilities include running an Art competition between the kids, the winner receiving large stack of cash, which since they are winnings are tax free. Maybe. I should charge for this fabulous tax advice, since most tax advisers shrug and say daft things like "well, the UK is really a tax haven".

 

[Guest]

If the cpompany brought the boat ,say for example to use as hospitality then sold it at a loss to relative or back to self would the loss then count to offset further profits.Also what about anual depreciation
As yet no boring boaters have replied so as usual we all can only surmise as to why the dirty lucky git's can leave those lovely boats in port
Mick

 

[longjohnsilver]

Art competition

Is this competition only open to your kids, mind you i suppose it makes no difference if you are the judge.................
Have you actually tried this idea, and if so do the IR wear it?

 

[andrewbarker]

Hummm - now then Matts. Shurely if your company buys a boat worth £700K then its profits go down by £700K (less tax) & you get an Asset worth £700K (not taxed). And you then get busy depreciating that Asset by 25% each year to set against profits. N'est ce pas? All fine unless you want to sell the boat, in which case you get a spanking from Mr Taxman.

 

[markc]

What about tax for private use? A friend of mine got big time clobbered by the tax man for using the company chauffeur for private trips - had to pay something like 8k tax!!

M

 

[Guest]

You'll need to do better than that to get past the inland revenue. To be deductible, an expense has to be wholly and exclusively for the purposes of the trade. The revenue take a pretty rigid interpretation of that and really, the only companies who can get away with a nice boat are those who are in some way "in the trade". Even there the director who "looks after the boat" at holiday time and/or weekends will have a whopping great benefit in kind on his own tax bill. If you think a company car is expensive on your tax return.....!!!!

Nick (with regrets)

 

[jfm]

Re: but !!!

Depsol, who started the tax advice element on this thread, is based in Guernsey, where the tax rules are a bit different

JFM

 

[miket]

Re: Tax Advice!!!

Serious tax advice costs serious money.

You may find one or two of these tax advisers owning some pretty exotic boats, not as tax deductible, but out of income!!
The tax advice you pay for is deductible!

Good game.