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Live aboard change of use


NeenyB

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3 hours ago, NeenyB said:

So to summarise the answer to my original question-

 

I take it that I would have to earn over £85k (which I wouldn't believe I

 would even at best estimations!) So therefore I would not have to pay the VAT for change of liveaboard. *

 

 

 

No. 

 

You have mixed up answers to two different questions. 

 

1) If your new business has a turnover (note - turnover is is different from earnings) exceeding £85k, you will have to register for VAT and charge VAT on all your prices.

 

2) If you bought the boat new and paid Zero Rate VAT on it, then you may well have to pay to HMRC VAT on its current value. This is nothing to do with the turnover of your new business.

 

 

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3 hours ago, NeenyB said:

Thankyou for all the contributions. Yes, it is very complicated and there is lots to consider with the business side and of course meeting regulations and safety standards. I am aware and proceeding with most of those points, there was just a couple I was unaware of, Thankyou for highlighting them.

 

So to summarise the answer to my original question-

 

I take it that I would have to earn over £85k (which I wouldn't believe I

 would even at best estimations!) So therefore I would not have to pay the VAT for change of liveaboard. *

 

* Im going to triple check this with HMRC. 

 

Thankyou

 

 

Lots of assumptions and confusion here.

 

If you are not going to collect more than £85000 in a year, you don't have to charge, and pay, VAT on your takings.

 

If you didn't buy your boat new, there is no issue with VAT on your boat purchase.

  • Greenie 1
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On another tax situation - remember that ABNB income is taxable and any income from ABN is added to your 'normal' income to give your gross income on which you are taxed.

 

Not keeping accurate ABNB records is Tax Avoidance and is punishable by a prison sentence.

 

If you rent a room in your main residence you do have an extra tax relief called Rent A Room relief, but in your case if you are renting the boat out and you are not living in it as your 'main residence' then your income is fully taxed with no additional reliefs.

 

Some info on the tax situation for ABNB owners

 

A comprehensive guide to doing taxes as an Airbnb host - untied

 

SPEAK TO YOUR ACCOUNTANT BEFORE DECIDING AS THE RULES DO CHANGE AND NOT OFTEN FOR THE BETTER.

 

 

Don't think that HMRC will not know your earnings as ABNB have reached an agreement with HMRC that they will report all of their member earnings to HMRC (you records need to accurately show the sane as the ABNB bookings show or you are in big trouble) From 2021 HMRC have focussed on ABMB incomes as "easy meat"

 

............But he warns: “Anyone in the UK who imagined that their enterprise would not be of concern to HMRC may well be in for a nasty shock from 31 January 2021 when the implacable investigative spotlight of the tax authorities will be turned to focus on them.”

McMonagle says the probe follows a deal last year in which a £1.8m settlement was struck between Airbnb and HMRC; part of the agreement was that the company would share income data for its 225,000 UK hosts 

Edited by Alan de Enfield
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