Air B and B'in a room in your boat

[boater123]

Hi,

 

Just wondered whether you are allowed to Air ba nd b a room in your boat if you are living in it? Does this affect your license?

 

Cheers,

 

Will

[ditchcrawler]

Paying guest, business, trade boat, BSC insurance, Trading licence

[Alan de Enfield]

It doesn't matter if you live in it or not.

 

Taking money/payment = business use.

Business use = a whole raft of different rules, regulations, licences and insurance.

 

Short answer to your question - Yes !

[Athy]

It doesn't matter if you live in it or not.

 

Taking money/payment = business use.

Business use = a whole raft of different rules, regulations, licences and insurance.

 

Short answer to your question - Yes !

Your answer is commonsensical. But I'm not sure if it's correct. I recall reading (and it surprised me) that if you let out a room in your dwelling (generally a house or flat) then the rules are quite light, indeed I'm not even sure if you have to declare the earnings for tax. So if your dwelling is a boat, I am not sure if there is a difference.

[mrsmelly]

Your answer is commonsensical. But I'm not sure if it's correct. I recall reading (and it surprised me) that if you let out a room in your dwelling (generally a house or flat) then the rules are quite light, indeed I'm not even sure if you have to declare the earnings for tax. So if your dwelling is a boat, I am not sure if there is a difference.

 

If you live on a boat you are classed as Homeless, its not a dwelling.

 

Tim

[sueb]

Different authority in charge. House rules completely different to boats

[Athy]

 

If you live on a boat you are classed as Homeless, its not a dwelling.

 

Tim

I very much doubt that. Just because it's afloat does not mean that it isn't a dwelling. In any case, even in the event that it is so, no one could object to your renting out part of your dwelling, because you wouldn't have a dwelling, so there would be no case to answer.

[Mal in Somerset]

As far as HMRC are concerned the boat must be a "houseboat" as defined below:

 

A houseboat which is permanently located on a site and connected to all mains services may be regarded as a dwelling house. If the houseboat has been used as an immobile residence for a period of 6 months or more and has had all of its engines removed it should be regarded as a dwelling house.

 

To be taxed as UK property income (also to be a PPR for CGT) it needs to be immobile per above otherwise any income is taxed as trading income.

[Athy]

Good information, Mal, thank you.

[wrigglefingers]

The question came up when a journalist wrote about letting out space on her narrowboat in London as way of generating extra income through AirBnB. She was rapidly reminded by CRT that this wasn't within her power to do without incurring additional cost and responsibilities. So, yes, it does have an impact on your licence, BSC and your insurance.

[Mal in Somerset]

I think this was the original article.

 

http://www.theguardian.com/technology/2014/oct/13/airbnb-ethos-property-rental

 

The changes announced in the budget would allow £1,000 profit to be generated on internet trading income without paying tax from April 2017 onwards, however I am pretty sure that CRT would continue to treat it as a trade as far as licences etc. are concerned.,

 

This is separate from the proposed £1,000 allowance for internet property rentals and the current rent-a-room allowance of £4,250 (going up to £7,500 in April) which only apply to property income (i.e. "houseboats").

Edited March 22, 2016 by Mal in Somerset

[MtB]

You'll need a landlord gas safety inspection and certificate too.

('Rent-a-Room scheme landlords are not excused this requirement.)

[boater123]

surely you could get away with it though, how would they know?

[Alan de Enfield]

surely you could get away with it though, how would they know?

 

How will anyone know you have a room for rent ?

 

Will you advertise it ?

Air BnB ?

General internet tourist places ?

 

That's where C&RT have found other people renting boats / rooms and apparently taken action.

London is a real hot-spot for C&RT enforcement - elsewhere around the country you may not be 'spotted' - in London you most likely will.

[Athy]

The onlyest (?) way in which one could get away with it is if no money is seen to change hands - i.e. no written contract, no receipts given for payments. Fine until one day the tenant - whoops sorry, friend who's staying over - really does stop the money changing hands, at which point one has no legal recourse.

Edited March 22, 2016 by Athy

[valrene9600]

As far as HMRC are concerned the boat must be a "houseboat" as defined below:

 

A houseboat which is permanently located on a site and connected to all mains services may be regarded as a dwelling house. If the houseboat has been used as an immobile residence for a period of 6 months or more and has had all of its engines removed it should be regarded as a dwelling house.[/size]

 

To be taxed as UK property income (also to be a PPR for CGT) it needs to be immobile per above otherwise any income is taxed as trading income.[/size]

If income taxed then a lot of deductables will be allowed. It could quite easily show no profit on paper for a number of years so going this route could work.

[ditchcrawler]

surely you could get away with it though, how would they know?

You can get away with murder if no one knows.

[valrene9600]

A trading licence is not much more than normal one. So if you comply with gas test and everything else could be a nice small income. Guests could be accomadated in different areas to comply c/c rules.

[MtB]

surely you could get away with it though, how would they know?

 

 

Ignoring the regulations and getting away with it because nobody notices, is not the same thing as complying with the regulations.

[IDS]

You might want to consider 3rd party liability for the occasion when the paying guest slips on the gunwale, cracks their head on the deck, ends up in the cut, and want to claim damages.

[Athy]

You might want to consider 3rd party liability for the occasion when the paying guest slips on the gunwale, cracks their head on the deck, ends up in the cut, and want to claim damages.

Oh, but that's not a paying guest, it's my friend who's staying with me at the moment (who can, I believe, still make a claim, but the lack of commerciality would make that claim weaker in the eyes of the law).

[valrene9600]

You might want to consider 3rd party liability for the occasion when the paying guest slips on the gunwale, cracks their head on the deck, ends up in the cut, and want to claim damages.

If run as legit business you would have insurance for this.

[MtB]

If run as legit business you would have insurance for this.

 

 

But the OP is talking about ignoring 'the regs' because he thinks no-one will notice...

If so, not 'legit' at all.

[junior]

Can't be much different from Hotel boats can it? And they exist, so it can't be as difficult to get sorted legitimately as the doom merchants on here would have you believe.

 

The best people to ask would be CRT.

[Lady Muck]

Can't be much different from Hotel boats can it? And they exist, so it can't be as difficult to get sorted legitimately as the doom merchants on here would have you believe.

 

The best people to ask would be CRT.

Correct, if you're onboard then it counts as hotel boat. But have you seen the rules and regs for hotel boats? You need a boatmasters ticket for a start.

Thing is CRT rules and regs just don't match up with how people use their boats, now.

There was someone renting bunks on their nb for £30 a night (seemed to be permanently in Paddington basin), so that would definitely count as a hotel boat. But like all of these enterprising types, the business doesn't last, the business depends on mooring in the touristy areas and new CRT guidelines mean they aren't cruisiing enough and they don't get a new license when the time comes.