Use of a boat as an office

[James W]

Hi all,

I am in desperate need of a small office, and I wondered if anyone knew the tax implications of buying a boat to use as an office, with the added bonus of sailing when off duty and a lovely view. I understand the boat would have to be of a certain size, but I only need space for a laptop, hard drives and a few files.

Any experience gratefully received.

 

[Seashoreman]

Someone tried that on a swinging mooring here a few years ago. Unfortunately the tax man didn't swallow it! Good luck.

 

[Seajet]

Someone here just mentioned a grp Kestrel 22 twin keeler going for £10 !

It won't be rewarding to sail but plenty of space for a laptop and at least it's theoretically mobile under sail.

 

[PhillM]

Nothing stopping you buying a boat and using it as an office provided that you are allowed to conduct business under the terms of where you keep her.

Tax man is unlikely to allow you to offset the cost of the boat, depreciation, mooring costs or running costs from your business. You might also struggle with business insurnce if you don't have a home / office address and finally you would have to see what your boat insurers think.

I am sure that many of us pop to the boat with a laptop from time to time, just not sure that full time it would work out.

 

[peter2407]

Dont declare it as such. Unless you have a business that is directly marine related and you can show (some, no matter how paltry) related income, for which you may well need to code her for charter etc ...security through obscurity is the maxim.

 

[sarabande]

FWIW I spent 2 yrs living on board just by Heathrow. I was very careful to track which days/nights were used for business and which for personal recreation.


Inland Revenue allowed me £95 per night accommodation costs as I was within the M25 ring, plus (about) 60% of the electricity and some other costs as I was registered as a contractor with an umbrella company who dealt with all the technical details. Their view was that the boat was equivalent to a hotel or B&B, which I would have been allowed to claim for, otherwise.

Everything declared; Home residence 200 miles away; work places 5 and 30 miles away during the week, plus I was contracting for another company in another part of England so wasn't tied to one company. (IR 35 )

Boat used as hotel seems OK.

 

[James W]

If i'm going to have to pay rent and rates on an office anyway, what's to stop a boat being used as the office, with subsequent mooring and water/electricity paid for on a pro-rata basis when i'm onboard working?

I'll have to run it by the accountant.....

 

[Seajet]

Mike Peyton did a cartoon of a boat in a marina called ' Business Premises ' on the dodgers...

 

[maby]

Our accountant reckons she can get pretty much anything apart from horses and boats past the tax man. When we asked if we could buy a 55' Beneteau as a company expense she suggested that we might like to find a different accountant!

 

[James W]

Our accountant reckons she can get pretty much anything apart from horses and boats past the tax man. When we asked if we could buy a 55' Beneteau as a company expense she suggested that we might like to find a different accountant!

 

[PhillM]

Our accountant reckons she can get pretty much anything apart from horses and boats past the tax man. When we asked if we could buy a 55' Beneteau as a company expense she suggested that we might like to find a different accountant!

Mine says declaring a horse or boat is about as reliable an invitation to HMRC to crawl over your accounts as you can get.

Unless you are a coded or clearly marine business.

I like the accommodation expenses angle and can see how that works. Hmm that gives me an idea ...

 

[snowleopard]

Pessimist & Pragmatist of this parish have spent a lot of time working from their boat (in IT) so they may well have researched this issue. If they don't turn up on this thread you could drop them a PM.

 

[fisherman]

Use of home as office is allowable but needs to be at an acceptable level, and also bear in mind if you claim too much you will be liable for capital gains when you sell, it will be deemed to be business premises. I claim £350 a year to cover the space taken up, heat and light while working, but remember this is only to do the paperwork associated with my main businesses which all take place away from home. You could not expect to claim much for your boat unless you really run the business from it, and then it is a business asset, claimable in proportion in all ways but subject to tax on sale. I claim everything for my boat, 100%, but it doesn't get used for pleasure.

Edit: I had an argument with the tax man, he said my boat was my business base, and I could not claim travel to and from. After three months he backed down, but I should have said "Send all business correspondence to the boat then". Could you give an address for your proposed business base?

 

[macd]

...you will be liable for capital gains when you sell...

Capital gains on a boat? Now there's a novel concept.
Anyway, I imagine the statutory allowances would comfortably cover capital gains in the unlikely event there were any.

However, as you (and others) have suggested, I can see no reason why claiming office expenses at a reasoned, modest level is not acceptable. Unusual, yes, and the claimant can expect a fairly rigorous questioning (so, amongst other things, his tax affairs should be absolutely above-board). The claimant should also be able to explain why his home is not suitable for office use, but the boat is. If the OP's prepared to accept all that, no reason he shouldn't go ahead.

Why not ask the tax man? Most of them speak english and very few actually bite.

 

[fisherman]

Capital gains on a boat? Now there's a novel concept.
Anyway, I imagine the statutory allowances would comfortably cover capital gains in the unlikely event there were..

Why not ask the tax man? Most of them speak english and very few actually bite.

Yerbut, my boat has been written down to practically zero, there will be a gain if I sell. I was pointing out what happens if the boat is a genuine business asset.

 

[colind3782]

Three best ways to invite HMRC over for a chat:

By phone
By post
Buy a boat.

 

[macd]

Yerbut, my boat has been written down to practically zero, there will be a gain if I sell. I was pointing out what happens if the boat is a genuine business asset.

I wasn't taking issue with you, fisherman. Partly, I was making the obvious joke. But partly (unless things have changed since I went through this with capital gains on a London flat), I was pointing out that the capital gains (tax-free) allowances are significant. Perhaps they have changed?

 

[NealB]

I wasn't taking issue with you, fisherman. Partly, I was making the obvious joke. But partly (unless things have changed since I went through this with capital gains on a London flat), I was pointing out that the capital gains (tax-free) allowances are significant. Perhaps they have changed?

I think you and fisherman are talking at cross purposes.

I think you're thinking of capital gains tax, whereas I think fisherman is really talking about profit/ loss on disposal (which compares written down value against disposal proceeds ie not a capital gain at all).

 

[Birdseye]

Hi all,

I am in desperate need of a small office, and I wondered if anyone knew the tax implications of buying a boat to use as an office, with the added bonus of sailing when off duty and a lovely view. I understand the boat would have to be of a certain size, but I only need space for a laptop, hard drives and a few files.

Any experience gratefully received.

And posters on here moan about immigrants abusing the system!

 

[James W]

And posters on here moan about immigrants abusing the system!

I'm not wishing to abuse anything. I am in need of an office and the boat is a potentially viable option. I pay my taxes in full without avoidance so please don't cast aspersions.