New Licence

[Maverick]

Was asked a question today that I couldn't answer. Maybe someone can help.

 

When buying a first BW new licence (not renewing) does it cost the standard charge or do you get it for the cheaper prompt payment cost?

[Scotty]

I've been wondering this myself, I think it's worded that the discount applies when paying in advance.

 

To get the licence you need insurance, so unless you insure the boat before you apply for the licence (before you take ownership) you wont be able to pay in advance.

[cotswoldsman]

Was asked a question today that I couldn't answer. Maybe someone can help.

 

When buying a first BW new licence (not renewing) does it cost the standard charge or do you get it for the cheaper prompt payment cost?

 

Yes you do

[BigRoj]

If you pay the fee before the licence is due to start, you are eligible for the 10% discount. I have done this a few times when changing boats.

 

For example: If you arrange for the insurance to start on, say, 1st June, and get a cover note, then go to a licencing office with the cover note and BSC, on, say the 28th May, then you will get the 10% off. The discount applies on the date of the licence proposal, so if you did it on the 31st May, it would still apply, even though BW wouldn't get the application until after the date it was due to start.

[valrene9600]

I remember when i first got a licence it was mid February and i got the discount but like car tax the licence started from Feb 1st so i lost a couple of weeks.

[Ray]

Just got my renewed licence and obviously hadn't noticed last year - my first - that an element of the fee is VAT. Anyone know why we pay VAT on a canal licence but not on a vehicle licence - road fund - or a television licence?

Edited February 18, 2008 by Ray

[GUMPY]

Just got my renewed licence and obviously hadn't noticed last year - my first - that an element of the fee is VAT. Anyone know why we pay VAT on a canal licence but not on a vehicle licence - road fund - or a television licence?

 

Because BW can then claim back all the VAT spent on maintainance as any other company would do.

Thus saving thousands which can be spent on more maintainance.

 

Julian

[Ray]

But just because the company is VAT registered, that doesn't mean that licences have to be. Is an EA licence VAT rated?

[sueb]

But just because the company is VAT registered, that doesn't mean that licences have to be. Is an EA licence VAT rated?

 

No

 

sue

[debbifiggy]

No

 

sue

But the EA don't have to pay VAT as they got a special exemption so it makes no difference to them. BW have to pay VAT as they aren't exempt so it makes a huge difference on maintenance contracts. Found this out when querying on a Gold licence why VAT was charged on the BW portion and not the EA portion of the fee.

 

I'm sure if you write to Sally Ash, Head of Boating Development or the BW VAT finance bod you will get the same answer as I did.

 

HTH, D

 

P.S. You going to any of the usual festivals this year? :-)

[moggyjo]

Just got my renewed licence and obviously hadn't noticed last year - my first - that an element of the fee is VAT. Anyone know why we pay VAT on a canal licence but not on a vehicle licence - road fund - or a television licence?

 

I went into this a while ago, you don't have to pay VAT if you live on a houseboat but the only sort of houseboat has to be one that does not have a engine room/ area for a engine, you still have to pay if you have a empty engine room. I got the info from the VAT information leaflet that covers caravans and boats.. The VAT treatment of houseboats

top ^7.1 What is a houseboat?

A houseboat is defined for the purposes of VAT as being a floating decked structure:

 

which is designed or adapted for use solely as a place of permanent habitation; and

which does not have the means of, and which is not capable of being readily adapted for, self-propulsion.

top ^7.2 What is meant by self-propulsion?

This term refers to any vessel that is either:

 

independently propelled; or

not independently propelled but could readily be adapted to be capable of self-propulsion, for example by installing an engine, propeller or mast.

It is unlikely that a vessel such as a barge or a yacht would be regarded as a houseboat for the purposes of VAT because they are likely to lend themselves to being readily adapted.

 

top ^7.3 How should I treat the sale of a houseboat?

If you sell a houseboat or let it on hire for towing away to a mooring of your customer’s choice your supply is zero-rated.

 

Otherwise the sale of a boat, which is not a houseboat as defined above, is normally standard-rated.

 

top ^7.4 Fixtures, fittings and removable contents

These are treated in the same way as caravans - see paragraph 3.1.

 

top ^7.5 Supplies of accommodation in houseboats

If you let accommodation in a houseboat already sited at a mooring, the VAT treatment is the same as for caravans - see section 5.

 

top ^7.6 Moorings for houseboats

If you supply a mooring for a houseboat the mooring is exempt.

 

If you supply a mooring for any other type of vessel, then your supply is standard-rated unless it qualifies for zero-rating as explained in Notice 744C Ships and aircraft.

[carlt]

This is for the boat, not for the licence.

Edited February 18, 2008 by carlt

[sueb]

But the EA don't have to pay VAT as they got a special exemption so it makes no difference to them. BW have to pay VAT as they aren't exempt so it makes a huge difference on maintenance contracts. Found this out when querying on a Gold licence why VAT was charged on the BW portion and not the EA portion of the fee.

 

I'm sure if you write to Sally Ash, Head of Boating Development or the BW VAT finance bod you will get the same answer as I did.

 

HTH, D

 

P.S. You going to any of the usual festivals this year? :-)

 

Hope to go to Wendover if it happens and Saul if it doesn't flood

Sue