Owning a boat as a company and using it for fun

[Croolis]

This is completely hypothetical. I am not a company owner and I'm unlikely to have a company that owns a boat.

But I'm curious as to how it could work. If I was a company director, but it was just me and a finance director or something, and the company did something other than fishing, but then with its company money earned from this other thing then bought a fishing boat and ostensibly sold its services as for-hire fishing trips, but actually really pretty much only got used for fun fishing trips by the directors, that'd work, wouldn't it?

This isn't a fantasy where one is accruing the money to own a fishing boat but not give any of it to one's bitter, nasty, grasping ex partner because she gets quite enough already. Honest.

[Steve509926]

Benefit in kind tax springs to mind!

[Pikey Dave]

You’d have to show that the boat was purchased for a legitimate company use, otherwise the company wouldn’t be able to write it down for tax purposes. Any operating costs wouldn’t be tax deductible, you’d have to show that the purchase & operation was part of the business enterprise. There’s nothing to stop the company from buying & owning the boat, it’s just that it wouldn’t be tax deductible.

[Pikey Dave]

Ps, hypothetically, the grasping ex partner may be entitled to 50% of the shares in the hypothetical company. Ergo she would own half of the company assets.

[Croolis]

Originally Posted by Pikey Dave

Ps, hypothetically, the grasping ex partner may be entitled to 50% of the shares in the hypothetical company. .

Urrrgh

EDIT: oh hang on, I think that's only if we were married and the company was in existence when we divorced. We were never married, and have been split up for years, but have a child together. If I started a company tomorrow, I don't think she's entitled to diddly, besides a portion of what I'd pay myself.

I guess I could have it for hire, then have a mate come and "hire" it and its crew (me) when we wanted to go out lol.

Anyway, this is all just nonsense, it's just a conversation I had with a mate the other day about when we're all miwwionaires Rodney.

EDIT EDIT: Ex might be able to claim some additional money based on value of shares I own, not claim the shares themselves. Which is a bit mad. I mean, say the company I set up earned 500k one year (success!! ) , but I only paid myself 35k because I wanted to grow the business, surely she's only entitled to some of my 35k?

[Croolis]

Oh well, if it happens, I'll get an accountant .

[beamishken]

If you were never married then presumably your ex is only entitled to a percentage of your income for maintenance for the child(ren) regardless of how that income is earned. If you start a buisiness the expectation would be that the buisiness would make a profit & contribute to your income. A Ltd company is a good vehicle for lowering your income but retaining the use of company assets eg company cars, presumably if that buisiness was a boat hire buisiness if it showed a small profit then the tax man would be happy & the small profit wouldnt add hugely to your income & wouldn't affect your maintenance payments by much. My understanding is she would have no claim on buisiness assets anyway & especially those accrued after separation. Boat could be on a marine mortgage in any case therefore not technically yours