Cost sharing of boat

[scottie]

At point does cost sharing stop and chartering start?
Is there a point at which regular crew contributing to the cost of running the boat causes any complications and is this affected by them using the boat without owners being on board?

 

[Seajet]

If sailing with friends and going abroad, don't mention it if they give something towards the upkeep & costs, just say you pay the lot and they buy you the odd beer !

If actually letting people sail without you, are they chums, or are they people you don't know paying you ?

Both would need sorting with insurance.

 

[Deleted member 36384]

I remember there being a discussion on here about what constitutes a commercial transaction. The key criteria (IIRC) was that the users of the boat were known to you (this could even be friends of friends) and the charge was only to cover reasonable costs.

If its commercial then there are implications with Insurance and HMRC for personal income.

For example if you lent the yacht out regularly through a club for members who paid you a fee then that would be a commercial transaction (even though you may know all the club members). If it was only the odd weekend then that would be reasonable private use by owners family or friends. However, your insurance might not cover this reasonable use anyway.

For private use cost sharing should not be unreasonable and be limited to share of the trips overheads: victuals, gas, fuel, berthing. As the owner of the boat you have bought it for your leisure use, not a commercial operation, hence the authorities (whomever) don't expect you to charge for profit if you lend the yacht out.

 

[Bosun Higgs]

Please tell me where you find crew that are willing to share costs.

 

[rob2]

A group of friends who used to crew for the odd cross channel race, were asked by the owner to deliver his boat to a French port so he could start his family holiday there and gain a few days more on the French coast. As "payment" we were allowed around ten days to cruise to the designated hand over. Obviously, all costs associated with our trip were down to us, but under French regulations, you can change crew but not the skipper otherwise it is considered to be a charter. Of course, over the intervening millenia these regulations may have changed, but we had to swap over in the Channel Islands. Unfortunately, the skipper had a seafood supper on his first night and only recovered in time to sail home again!

Rob.

 

[bedouin]

Technically I think allowable costs are purely the costs while sailing - food, fuel and so on. I don't think even sharing marina fees is technically allowed.

 

[KenMcCulloch]

I investigated this myself recently and it seems that so long as the owner(s) pay the regular costsof maintenance, insurance, home port mooring fees etc it's perfectly lawful to ask crew to contribute to the specific costs of a trip including harbour dues or overnight moorings as well as consumables.