Tug & Butty

[WJM]

Thats settled that then - the Tug/Butty VAT wheeze is a commercial non-starter, whatever it's technical merits may be.

[zenataomm]

Thats settled that then - the Tug/Butty VAT wheeze is a commercial non-starter, whatever it's technical merits may be.

 

 

Until the next person comes along with ............

 

"I've just read in Banal & Wot'away" that if you don't have a bottom in your boat you don't pay ........"

"Hey everyone insure your new boat as a Wendy House then you can claim back 17.5% .........."

"My mate knows a bloke down the pub whose friend's an expert and says if you register it in Berwick upon Tweed being neither English or Scottish then VAT.."

 

What do you reckon a fortnight?

[Gary Peacock]

It sounds like for once we made the right decision on this one.

 

But it also sounds like it could be a costly one for others.

Edited April 22, 2008 by Gary Peacock

[Gary Peacock]

Did anyone who visited Crick find out anymore about how HMRC view the VAT free butty?

 

I had to tell someone today that in my view it was a nonstarter but they were adamant that builders are offering to do the butty VAT free with HMRC's blessing.

 

It all seems to be getting a bit he says she says etc!

[jelunga]

Did anyone who visited Crick find out anymore about how HMRC view the VAT free butty?

 

I had to tell someone today that in my view it was a nonstarter but they were adamant that builders are offering to do the butty VAT free with HMRC's blessing.

 

It all seems to be getting a bit he says she says etc!

Gary,

I visited the Tug and Butty stand and had a long chat with the chap there, whose name I forget. The impression I got was that all was well, no problems with the idea, HMCR happy etc.

My only concern was what was the durability of the interconnecting system like? Can you disconnect and re conect frequently like a articulated truck and trailer? I was assured no problem.

 

Keith

[Gary Peacock]

Gary,

I visited the Tug and Butty stand and had a long chat with the chap there, whose name I forget. The impression I got was that all was well, no problems with the idea, HMCR happy etc.

My only concern was what was the durability of the interconnecting system like? Can you disconnect and re conect frequently like a articulated truck and trailer? I was assured no problem.

 

Keith

 

It seems to be a case of HMRC saying one thing to us and another thing to them which is not that unusal.

 

I also noticed that all mention of "Tug & Butty" seems to have been removed from Simpsons Boat Builders website so maybe they are treading carefully like us too.

 

I suppose the obvious question is-

 

As anyone or does anyone know of anyone who actually managed to get one of these buttys VAT free?

 

Actually VAT free is the wrong term actually it is -

 

Where zero-rating applies to a caravan/houseboat, it also includes those goods which a builder would ordinarily incorporate into a new house or flat. Other fixtures and removable contents supplied with the caravan are standard-rated.

 

So only some elements of the butty (If it can actually be classified as a houseboat) can have zero rating applied not the entire craft and all it's expensive components and extras.

 

 

 

 

 

On a slightly different tack Les made a good point yesterday on another forum about one potential pitfall of trying to get a boat VAT free involving build contracts.

 

There is a clause in the BMF contract "AGREEMENT FOR THE CONSTRUCTION OF A NEW BOAT"

 

3.6 If for any reason any tax, levy, charge or any other sum required to be paid by law shall be omitted from the amount of the Contract Price or shall be varied or introduced after the date of this Agreement and shall be required to be paid by the Purchaser the Purchaser shall pay such additional sum forthwith on demand.

 

I think the real intension of this clause was mainly to protect the builders from changes to the VAT rate etc.

 

If I was having one of these Tug Butty combinations built knowing the "iffy" VAT state of play I would be having that clause struck out for sure!

Although it is probably not in the spirit of the contract an inscrutable boatbuilder could probably use that clause to legally dump the problem on the customer.

 

In reality the unpaid duty would remain an issue between the VAT registered builder and HMRC to resolve, but the builder could probably quite legally pursue the customer for the money to repay HMRC.

 

During another VAT dispute involving narrowboats one fairly well known builder suggested to me that because he had no way of repaying the VAT to HMC he was going to do just this to get HMC of his back.

 

He did pay the bill but I don't know if this is how he got the funds together.

 

 

 

Edited June 21, 2008 by Gary Peacock

[larkshall]

To take a more oblique view, whats the VAT rate in Poland?

[Gary Peacock]

To take a more oblique view, whats the VAT rate in Poland?

 

22% I think?