Ltd Co buying a caravan?

[DizzyD]

Same topic (slight twist)

I am a contractor working for a national telecoms and broadcast company, my role is nationwide and involves me staying away from home for weeks at a time at different locations each week.

For the last year i have been using our old caravan and claiming the touring site fees, however i have just purchased a brand new £23,000 caravan on finance and am wondering the best way to play this.

If the company was to own it as an asset then presumably i would get tax relief of some kind on the purchase cost and the company absorbs the losses due to depreciation. Or am i able (as a director) to rent it to the company when i stay away?

Also when i retire how do i get the asset out of the company and into my personal ownership?

VAT, currently we are within £5000 of the required registration limit, if this is claimable i assume now is the time to register?

Your views would be appreciated

[northernladuk]

You will be using the caravan personally so it's not wholly and exclusively so the BIK. It's not a company asset.
Speak to your accountant.

When you retire? How long have you and do you expect to be working for this gig?

[Paddy]

I am a contractor working for a national telecoms and broadcast company, my role is nationwide and involves me staying away from home for weeks at a time at different locations each week.

For the last year i have been using our old caravan and claiming the touring site fees, however i have just purchased a brand new £23,000 caravan on finance and am wondering the best way to play this.

If the company was to own it as an asset then presumably i would get tax relief of some kind on the purchase cost and the company absorbs the losses due to depreciation. Or am i able (as a director) to rent it to the company when i stay away?

Also when i retire how do i get the asset out of the company and into my personal ownership?

VAT, currently we are within £5000 of the required registration limit, if this is claimable i assume now is the time to register?

Your views would be appreciated

Put it in your cat's name and pay rent (cash) to your cat.

[TheFaQQer]

Also when i retire how do i get the asset out of the company and into my personal ownership?

Same way you get any asset out of the company - you pay the value of the item to the company and buy it.

[DizzyD]

You will be using the caravan personally so it's not wholly and exclusively so the BIK. It's not a company asset.
Speak to your accountant.

When you retire? How long have you and do you expect to be working for this gig?

Thanks for your reply

True, i will be using the caravan for a 1/2 week holiday each year, however that represents less than 4% of its total usage per year so the effective BIK is less than it would be with a company car.

Retirement, dependant on when i chose I've got 10years.

[DizzyD]

Same way you get any asset out of the company - you pay the value of the item to the company and buy it.

Hi thanks for your reply

yes sorry re-phrase the question.
do i buy it from the company at its written down value on the company asset register
A value that i assign to it or do i have to get it valued and pay market value?

[DizzyD]

Put it in your cat's name and pay rent (cash) to your cat.

Yes, not sure that would stand up to an investigation? It would be in the dogs name and he would say anything for a treat....

[northernladuk]

Thanks for your reply

True, i will be using the caravan for a 1/2 week holiday each year, however that represents less than 4% of its total usage per year so the effective BIK is less than it would be with a company car.

Retirement, dependant on when i chose I've got 10years.

Doesn't matter. You could have a company car that just sits on your drive. Just the fact it's available is enough to incur BIK. Percentage is irrelevant.

That said we are not accountants. Speak to yours or give HMRC a ring and see what they say.

You expect to be doing that gig for 10 years?

[northernladyuk]

Yes, not sure that would stand up to an investigation? It would be in the dogs name and he would say anything for a treat....

Rename your company after the dog or vice versa. Gives you a defensible fall back position in case of investigation.

In seriousness how much time do you want to spend trying to defend this to the inspector? Because I reckon the inspector will bring a trainee along, so that the trainee has a good story to tell at their retirement bash.

[TheFaQQer]

Hi thanks for your reply

yes sorry re-phrase the question.
do i buy it from the company at its written down value on the company asset register
A value that i assign to it or do i have to get it valued and pay market value?

You do the same as you would with any company asset - as they say, the size of the asset doesn't matter (or something like that).