Portofino
Well-Known Member
It's my understanding that the revenue use a balanced score card method to access a case these days .
They avoid writing down specific regs /rule s -drawing up boundaries .learn,t there lesson by loosing cases cos the defendant quoted back the "written rule (s) " .
Think recent Film scheeme .Idea was to promote investment in uk film industry giving a tax break to those taking part .
So if you where a footballer or Tv presenter as a day job , no particular back ground in film making , never mind ever got involved -even a touted 16 hrs /week -then the revenue successfully argued it was a tax fiddle -pay up -which it was for those not involved in the film .
Hobbies
Generally you can not expect the revenue to allow a tax break on a hobbie .
Horses ,boats , planes , classic cars etc -- sure you if can get the public to pay you for part using "it" -you now think qualifies as a buisness and all or some usage % in this case VAT can be offset /claimed back -but as others have said you are allowing joe public to use it to reduce your tax liability .- there is no rule or any time vs own use ratios to defend yourself
As I said balanced score card - so its diff to reffer to anything concrete .
They will argue its not a buisness -just set up to mitigate in this case VAT and presume offset any losses against you own tax return
Your Day job is your buisness not your hobbie .
Wife's an accountant not practicing now -keeps me straight
They avoid writing down specific regs /rule s -drawing up boundaries .learn,t there lesson by loosing cases cos the defendant quoted back the "written rule (s) " .
Think recent Film scheeme .Idea was to promote investment in uk film industry giving a tax break to those taking part .
So if you where a footballer or Tv presenter as a day job , no particular back ground in film making , never mind ever got involved -even a touted 16 hrs /week -then the revenue successfully argued it was a tax fiddle -pay up -which it was for those not involved in the film .
Hobbies
Generally you can not expect the revenue to allow a tax break on a hobbie .
Horses ,boats , planes , classic cars etc -- sure you if can get the public to pay you for part using "it" -you now think qualifies as a buisness and all or some usage % in this case VAT can be offset /claimed back -but as others have said you are allowing joe public to use it to reduce your tax liability .- there is no rule or any time vs own use ratios to defend yourself
As I said balanced score card - so its diff to reffer to anything concrete .
They will argue its not a buisness -just set up to mitigate in this case VAT and presume offset any losses against you own tax return
Your Day job is your buisness not your hobbie .
Wife's an accountant not practicing now -keeps me straight
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