Living in motorhome using for work, tax (1 Viewer)

[faraway]

Hi

I use my motorhome for work purposes, i.e. I need it for accommodation, parked at work (I would not have the job without it), use it for work purposes during the day (work and on-call) and am self-employed. Is there anyone on the forum with personal knowledge or experience of tax implications under similar conditions as I bought the motorhome during the last tax year and need to submit my return? Thanks

 

[nomadic]

As you are travelling to and from work, does your insurance policy provide cover for that use?

If the business has purchased the rig, I think you can set a % of its cost against "plant depreciation" per year, over a number of years, 10 years in the back of my mind, at least that was the situation some years ago. Other than that, the rig running costs can be used and set against your income, from memory a form p118 or p18, so long ago now. Best have a chat with a tax adviser.

 

[Sundowners]

I may well be wrong!!!!!! But if your van is over 3.5t and you carry anything for work you may well need a tachometer (unless things have changed)

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[faraway]

Thank you. It is 3.5 so that is not an issue.

 

[emjaiuk]

When I was working, as a sole trader my MH expenses were split according to mileage, fortunately I did an exhibition in Madrid for many years, so that worked out 50/50. Don't think that will help you though. Isn't that what accountants are for, to minimise losses due to taxation?

Malcolm

 

[faraway]

Thanks Malcolm, I will be contacting a tax adviser/accountant - just wondered if anyone here had experience of something similar so I can compare the advice given

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[Lenny HB]

If you carry any goods for work faily certain you need to have it plated from year one rather than a class 4 MOT.

 

[Silver-Fox]

Just simply claim for part of the "building" i.e. A room as you would if it's a house.

Claim your fuel as you would if it were a van or car, just buisness related obviously.

Job done I would say.

But I'm not a tax expert just can't see an issue, unless your claiming hundreds of thousands

 

[emjaiuk]

If you carry any goods for work faily certain you need to have it plated from year one rather than a class 4 MOT.

When I had a semi retirement job as a continental courier there was no requirement for plating, just the correct insurance (£1000 per year). It may be different for over 3.5t but that doesn't apply to the OP

Malcolm

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[jtp890]

If you need it for work and can fully substantiate with no private use, claim as commercial vehicle, capitol depreciation as plant and claim VAT back if registered. Where high value items are purchased, VAT reclaim can be made direct and not through trading returns.

 

[Lot lover]

Thanks Malcolm, I will be contacting a tax adviser/accountant - just wondered if anyone here had experience of something similar so I can compare the advice given

I am sure that you will find plenty of "experts" in every saloon bar who will all be knowledgeable on any given subject.

 

[ChaosToo]

Bit late to the party on this ....

Good luck trying to class you MH as a business expense. HMRC will take some convincing.

I also work away from home a lot, often staying in my van 5 nights a week. In fact, in over 2 years, I've never stayed in my MH for anything other than work. It's also my only vehicle.

The sole reason for buying it was the cost saving over hotels (I was spending over a grand a month!)

I'm a self employed Paramedic, but all the advice I've ever had is that HMRC will class it as a perk - thus imposing the Benefit In Kind tax on it (based on emissions and the NEW price!).

The problem you'll have is that the MH is available to be used for pleasure, whether or not you actually use it as such!

I simply claim my mileage - 45p a mile for the first 10k, then 25p a mile after that.

The cost of the MH comes out of my private account, not the business one.

Be interesting to find out how you've got on? .....

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[Silver-Fox]

The problem you'll have is that the MH is available to be used for pleasure, whether or not you actually use it as such!

Is it not classed the same as a car, you can claim a percentage if used for business.

 

[Lot lover]

Good luck trying to class you MH as a business expense. HMRC will take some convincing.

Way back when this was the test for HMRC

"in order for an expense to be deductible it must be “wholly, exclusively and necessarily incurred in the performance of the duties” of the office or employment. This contrasts with the situation for self employed individuals where the expense must only be wholly and exclusively incurred in order to be allowable.Apr 22, 2010"

but no idea of current rules.

If it is important you will have to pay someone to find out and tell you.

 

[Derbyshire wanderer]

Ask a MP

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[ChaosToo]

Is it not classed the same as a car, you can claim a percentage if used for business.

Yep, same as a car, but the BIK tax is so high (c. 30%) and is based on the new price. In my case, that would be £16k in tax!!!

 

[ChaosToo]

Way back when this was the test for HMRC

"in order for an expense to be deductible it must be “wholly, exclusively and necessarily incurred in the performance of the duties” of the office or employment. This contrasts with the situation for self employed individuals where the expense must only be wholly and exclusively incurred in order to be allowable.Apr 22, 2010"

but no idea of current rules.

If it is important you will have to pay someone to find out and tell you.

And HMRC will insist that it isn't 'solely' for work, unlike, say, a liveried up work van .....

Its a con job. The only people who seem to be able to screw expenses for anything and everything are bloody MPs!

 

[Lot lover]

Its a con job.

Not at all, just learn the rules and use them to your advantage. And if you can't, find someone who can do it on your behalf.

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