Buying a Caravan through Limited

[Hill Station Murthy]

Hi everyone.

I have a 6 month contract starting in January and will need to stay away from home.

B&B is generally expensive so I was wondering if I could buy a caravan through my company and sell it on in the spring at the end of the contract (hopefully at a profit!).

Would the taxman frown on this? Would it be better to just do it with my own money?

[TheFaQQer]

Is it wholly and exclusively required by the business?

If not, then you can't expense it.

[Hill Station Murthy]

Is it wholly and exclusively required by the business?

If not, then you can't expense it.

It would be wholly and exclusively used by business.

[malvolio]

It would be wholly and exclusively used by business.

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.

[northernladuk]

Some threads that may be of use to you if this is a genuine request.. <cough> Caravan through winter? I don't think so.

http://forums.contractoruk.com/gener...g-caravan.html

http://forums.contractoruk.com/gener...campervan.html

http://forums.contractoruk.com/gener...mpervan-2.html

[TheFaQQer]

<cough> Caravan through winter? I don't think so.

Our campervan is fully winterised and toasty warm with the blown air heater

[prozak]

This could quite possibly be my favourite newbie question ever.

[SneakySimon]

[QUOTE=northernladuk;1431460]Some threads that may be of use to you if this is a genuine request.. <cough> Caravan through winter? I don't think so.

Some ex-residents of Dale Farm may challenge that.....

[northernladuk]

Some ex-residents of Dale Farm may challenge that.....

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]

It's absolutely fine. It's an asset not an expense.

If HMIT is not prepared to accept wholly and exclusively - though they may - then it is taxable to the person who gets the benefit based on its purchase price.

http://www.hmrc.gov.uk/guidance/480_chapter6.pdf

It may also be assessable to class 1A NI (not sure).

It may still be cheaper to do it this way than buying it personally, only you can work that out based on your overall position (and what you perceive the risk of it getting assessed as an asset at your disposal is).

Personally I got taxed on this basis as a result of inspection on a tractor, a lawn tractor and all sorts of other bits and pieces. Given the useful life of the asset it was a far cheaper way of doing it.