Working from Motorhome

[GeoffL]

I don't think so. Joe Bloggs is earning money renting his personal motorhome out, so it is taxable. It doesn't matter who it's being rented to.

Two scenarios:

1. Joe Bloggs rents his motorhome to his Ltd. Co.
   Joe Bloggs is liable for income tax on the hire fees and might be liable for class 2&4 NICs on those fees. The Ltd. Co. can offset the hire fees against corporation tax.
2. Joe Bloggs makes his own arrangements for welfare facilities and claims expenses for this.
   As for all allowable business expenses, Joe Bloggs is not liable for income tax on those expenses provided they are at a scale HMRC deem reasonable. As with other employee expenses, the Ltd. Co. can offset against corporation tax but will probably need to submit P11Ds and possibly pay class 1A NICs on any deemed benefit in kind. That said, employees providing their own welfare facilities isn't something explicitly covered by HMRC guidance AFAICT. However, a dispensation from reporting might be available if, for example, this could be considered included under 'uniform and tools for work' -- again, this is something to discuss with an accountant IMO...

Only in the first scenario is Joe Bloggs earning money renting his personal motorhome out.
You do not rent your car out when you use it for business travel. In the same way, you do not rent your motorhome out when you use it so you, personally, have the welfare facilities required by H&S rules.

How to complete P11D and P11D(b)

Find out what you must show on P11D and P11D(b) to declare your company's expenses, benefits and Class 1A National Insurance contributions.

www.gov.uk

Expenses and benefits for employers

If you're an employer and provide expenses or benefits to employees or directors, you might need to tell HMRC and pay tax and National Insurance on them

www.gov.uk

 

[CriftinsCampers]

@psuspiro I will type this in capitals as it is absolutely 10000000% the first thing you should have included in your opening post, WHAT DID YOUR ACCOUNTANT SAY?

It's staggering how many times similar question like this crop up here https://forums.contractoruk.com/ and "WHAT DOES YOUR ACCOUNTANT SAY" is always the default response followed by much piss taking if it turns out said contractor hasn't asked.

Those that haven't asked usually turn out to be trying to find some way to avoid tax by hatching some form of hairbrain scheme to take money out of their company hence the piss taking.

I bought my van through my LTD, I was able to claim back VAT, there was a related reduction in CT as a depreciating asset, I could tax insure and maintain the van as company expense etc. It was used solely for business use at that time.

I did consider converting it to use as accommodation however the complexity of funding that privately or via my LTD and cost of BIK and the fact it would never be practical to try and pretend I was using it "solely and exclusively" for company use meant my Accountant got very nervous.

I am guessing you don't have the cash or want to take out sufficient dividends out of your company to buy the van personally but if you do then I think (assuming you are working outside IR35) that expensing its use instead of hotel accommodation might be a viable option as discussed above.

However I have rarely met an IT contractor whos contract was truly outside IR35 so again an Accountant can advise on the implication if inside.

 

[SquirrellCook]

Parts of 100?? Not sure how you can have that many? Are you a politician?

 

[Alf]

You are best seeing an accountant I assume you are not VAT registered as a VAT registered person you can claim your VAT back

 

[mblinko]

Hi everyone,

My question is about motorhomes but also about accounting. Hope someone can help me
I'm about to buy a motorhome and will be working remotely from there. I would like to know, as a owner of an IT consultancy limited company, I can use my business to pay for the motorhome. Eg: buy it as a business asset, or rent from my self as a business office, or anything else that covers the cost of the motorhome
PS: I'm a UK resident, the business is also registered in the UK, but the motorhome is from a European country.

Thanks

I have some experience of this. I too was an IT consultant with a one man company for many years delivering those services all over the UK. I lived in a caravan close to wherever I was working. My company bought the caravan and it obviously became a company asset. Geographic origin of the van is not relevant. I charged the company the campsite fees, fuel costs subsistence etc. when It came time to close the company, I bought the van back at a reasonable price less depreciation costs. The tax man was happy in my case. You didn't ask about insurance but if you have SD &P use plus travel too and from work, I'd have thought you'd be OK, unless someone hates you and dobs you in. Hope this helps.

 

[maingate]

I worked as a Limited Company and used my Motorhome some of the time. My Accountant told me what I could and could not do. Basically you can claim for expenses but not much more. Given that campsite prices can be equal to Hotel prices, there is not much benefit in using a motorhome and self catering, organising water and gas etc.

Do you have a home of your own or do you want to live full time in a vehicle equipped for camping (which is what I think you intend)? If I am right in my thinking then I believe you need a major rethink of your future plans.