Buying a Caravan through Limited

[SneakySimon]

Assets

I didn't know about the ability to purchase assets - may have to look into this - though struggling to think what I could realistically purchase - anyone got any examples (apart from Tractors?!!?!?)

[TheFaQQer]

I didn't know about the ability to purchase assets - may have to look into this - though struggling to think what I could realistically purchase - anyone got any examples (apart from Tractors?!!?!?)

Computer?

[SneakySimon]

Asset

I was thinking of something a little more exciting / unique - a painting, a horse etc?

[FiveTimes]

A painting would be a great idea and one I thought about at the weekend but decided to steer clear of it.

[ASB]

I was thinking of something a little more exciting / unique - a painting, a horse etc?

Absolutely anything. There are special rules related to vehicles and a few other things.

In terms of a Horse yes it would be purchasable and almost certainly the BIK would land to the individual. However the maintenance of said horse, feed, farrier, vet, tack and all the usual tulip would not be allowable for CT.

The purpose of the BIK charge on assets placed at an employees disposal is to try and discourage this sort of behaviour by making it tax inefficient for the employee given the BIK charge and the 1A NIC charge.

It can still be effective with rapidly wasting assets, think yacht, aircraft this sort of thing.

Also the bik position is such that it is only chargeable if personal use more than incidental to corporate use. HMRC have clarified this with respect to compyters for example. I wouldn't expect them to be offering any clarification soon on horses, caravans etc al though.

[Wobblyheed]

Yeah but they don't earn tons of money for doing f' all and then attempt to hide as much of it as possible so as to give next to nothing to the gov.... Oh... hang on....

[ASB]

A painting would be a great idea and one I thought about at the weekend but decided to steer clear of it.

Only if you can avoid the BIK, otherwise it would be a poor idea. Tax on 20% of it's value would soon erode any potential gain. Especially since the painting would not normally be a wasting asset and wopuld be expected to be sold on at its original or increased value (suffering CT on any profit).

Of course in order to have any possibility of BIK The painting would need to be on show in the home office or similar.

[TimberWolf]

Ugggghh, a caravan. Surely a van, which is like a mini motorhome, is far better and more convenient than a disgusting chavy caravan. A van might be easier to put through the books as a business expense too, than a filth infested bank holiday nightmare and traffic hazard?

[Wanderer]

No it won't be, as far as Hector is concerned. Look up "Duality of purpose". For example, stay in it over a Friday night after a late finish and you lose.

Piffle. Another daft statement that proves that you really don't have a clue about expenses.

If you work late on a Friday and you choose to stay over at some place near work rather than travel home then it's a business expense, wholly and exclusively.

[malvolio]

Piffle. Another daft statement that proves that you really don't have a clue about expenses.

If you work late on a Friday and you choose to stay over at some place near work rather than travel home then it's a business expense, wholly and exclusively.

I do have a bit of a clue, actually. I also have an understanding of Hector's mindset. I also know people who have had Friday night accomodation expenses disallowed, since the hotel booking occurred after the end of their contracted working week so as far as Hector is concerned where you spend your weekend is up to you and nothing to do with business. Duality of purpose writ large.

Anyway, none of this is hard and fast, as you seem to believe, HMRC will reinterpret as they see fit. The point is that people are both aware of the risk and can prepare for it.