Is this too good to be true? I have been thinking of buying into a yacht share scheme where I end up paying £500 a month. The people who run the yacht share say I can run this through my business under marketing budget as I will be eneteraining clients. My accountant says that this is improbable but will check. Who is correct
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The people saying you can are trying to sell you something. The person who might tell you you can't is going off the check, so clearly there is some doubt. Why are you asking us before you get both sides of answer?
FWIW I doubt you can, myself - you could use the same logic to buy a restaurant or a conference centre or a timehsare in the Maldives. It's quite likely that you can but then have to pay tax on it as a BIK.Blog? What blog...? -
>I can run this through my business under marketing budget as I will be eneteraining clients
Only if you are genuinely entertaining clients. The fact that you even have to ask suggests that you are not.His heart is in the right place - shame we can't say the same about his brain...Comment
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You certainly can put it through the books. The question is how the revenue will teat it (or rather want to see it treated).
Essentially the IR will seek to treat the benefit you individually receive from it as taxable. It seems likely this may be 100% of it.
This may be some help http://www.hmrc.gov.uk/manuals/bimmanual/BIM42555.htmComment
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I was thinking about trying to get into motor racing, and sponsoring my car from my company, but reading that link there's little chance of getting away with that as it's essentially my hobby.
There must be a few people here who have tried this? Can you get away with reclaiming VAT?Will work inside IR35. Or for food.Comment
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You can only get VAT back if you are adding value, which usualy implies selling something to someone else. I have a Wholesaler's store account since I'm VAT registered, but I can't claim the VAT on a case of Stella Artois bought for my own conusmption. If I were buying it to sell it on, to add on to something I was selling, or to use in a strictly company-related activity like marketing, then I could.
Sponsoring your race car may be feasible since it is a marketing expense - you need to talk to an accountant.Blog? What blog...?Comment
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Originally posted by malvolioYou can only get VAT back if you are adding value, which usualy implies selling something to someone else. I have a Wholesaler's store account since I'm VAT registered, but I can't claim the VAT on a case of Stella Artois bought for my own conusmption. If I were buying it to sell it on, to add on to something I was selling, or to use in a strictly company-related activity like marketing, then I could.
Sponsoring your race car may be feasible since it is a marketing expense - you need to talk to an accountant.
Also the sponsorship must be in line with the other teams to be deemed as a wholly allowable benefit. i.e. you wouldn't get away with sponsoring your car £5000 a race if the usual amount for the races you are in is £100Comment
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