Here is a question

mike100 · 02 April 2005, 10:33

Is there or does anyone know of a way to offset the cost of a new rib against a business. The current business nature is contracting, or do I have to start some kind of charter business.

Many thanks in advance for any information

Mike100

hannah · 02 April 2005, 10:58

hi daddy! wow

Richard B · 02 April 2005, 11:15

Mike, the question has certainly been asked before, and an authoratitive ansewer given by Jon here: http://www.rib.net/forum/showthread....nces#post68652

Powerboat · 02 April 2005, 12:26

Not sure about UK Tax Law but I'm sure it's not too different to here ...

Qualify as a Powerboat Instructor ( PBI)Register as a sole trader with Freelance PBI as your additional occupation.

Buy a RIB as a tool of the trade.

While your income as a PBI will be taxed as additional income to your main job, you should be able to off set the cost of your RIB and associated running costs over 5 years.

lc0021 · 02 April 2005, 13:53

but can you offset the cost of the boat(s) against your total income - or just against the income derived from power instruction ???

Powerboat · 02 April 2005, 15:05

As a sole trader as opposed to a company your income from all sources is all lumped together ie even if you only make a few grand as a PBI it is added to your existing income and taxed at the high rate.

Therefore all allowances are lumped together too.

If you are a business failure as a PBI they will even allow you to off set PBI losses against other income and you could get a tax refund on income tax already paid through your paye job !

They will expect you to be actually instructing though !!!! Zero income declared for PBI work will ( rightly) lead to a visit !!

Health warning !!!!! I am not an accountant !!!!! This is "Pub" advice !

Kind regards,

Stuart

Richard B · 02 April 2005, 15:39

Read carefully what Jon wrote about BIK - Benefits in Kind!

lc0021 · 02 April 2005, 18:32

Quote:

Originally Posted by Powerboat

Health warning !!!!! I am not an accountant !!!!! This is "Pub" advice !

mmm... thats verrrry interesting.... I'll take some professional advice - and then perhaps we should continue the 'Pub' aspect of the advice in the Hodson Bay - or in the Lakeside Marina some evening....

Powerboat · 02 April 2005, 22:03

No probs !

That's what pubs are for !!

Engineers like us talking accountancy !!

Why not tie it in with a test drive on our new Parker Ally Cat !

Best wishes,

Stuart

Doug Stormforce · 05 April 2005, 00:36

I also dont claim to be an expert but it seems to me that if it is a business expense then you can claim it, if not then you are attracting un necassary attention to yourself.

Richard B · 05 April 2005, 00:45

Doug,
I've just had a look at your web site. Do you use Rogue Wave's boats?