Jump to content

Finance - zero VAT for liveaboards


eco-boat

Featured Posts

3 minutes ago, Robbo said:

You mean sanitary towels are not a luxury item?

 

I think narrowboats are though. As are house extensions, boiler repairs, drain clearing, travelling costs to and from work, moorings for your liveaboard boat... all luxuries. 

Link to comment
Share on other sites

1 minute ago, Robbo said:

 

Books are 0%, unless you want it in digital format because the words are more meaningful in the digital format and therefore luxury.

My interpretation (which is clearly wrong) of what HMRC consider as non-luxury items was:- If you don't have the item for a significant amount of time, you will stop breathing (e.g. food, shelter, healthcare), but here's a list of non-luxury (0% VAT) items (in HMRC's point of view) :-

 

Antiques, works of art or similar, when sold to public institutions
Burial or cremation (human)
Commercial land & buildings (selling/leasing/letting)
Cultural events operated by public bodies (museums, art exhibitions, zoos & performances)
Education, vocational training
Financial services (money transactions, loans/credits, savings/deposits, shares/bonds)
Funeral plan insurance
Gambling (betting, gaming, bingo, lottery)
Health services (doctors, dentists, opticians, pharmacists & other health professionals)
Insurance
Medical treatment & care
Membership subscriptions
Postage stamps
Sports activities & physical education
TV licence

 

A couple of these items make sense but most of them are just outright bonkers, ludicrous, bizarre!

 

Link to comment
Share on other sites

As has been said earlier, VAT is not a tax on luxury items. It is a tax on the supply of goods and services. Some items are liable at zero rate e.g. food and printed matter, some at a reduced rate e.g. sanitary products or energy and some are exempt e.g postagestamps etc.

The confusion may have come about as VAT replaced puchase tax, which did have the concept of luxury items, when the UK joined the EC in 1973.

Link to comment
Share on other sites

6 minutes ago, eco-boat said:

Gambling (betting, gaming, bingo, lottery)

I can't see any reason why this would be classed as non-luxury!

Just now, RLWP said:

I'm getting confused. Is this a boat building or a world-changing thread?

It's a discussion on VAT.

Link to comment
Share on other sites

1 minute ago, philjw said:

Gambling is exempt from VAT as there was already an Excise duty on it.
This no double taxation principle doesn't extend to fuel though as VAT is chaged on the selling price which includes the Excise Duty.

I wouldn’t say fuel was a luxury item either!

Link to comment
Share on other sites

23 minutes ago, eco-boat said:

My interpretation (which is clearly wrong) of what HMRC consider as non-luxury items was:- If you don't have the item for a significant amount of time, you will stop breathing (e.g. food, shelter, healthcare), but here's a list of non-luxury (0% VAT) items (in HMRC's point of view) :-

 

Antiques, works of art or similar, when sold to public institutions
Burial or cremation (human)
Commercial land & buildings (selling/leasing/letting)
Cultural events operated by public bodies (museums, art exhibitions, zoos & performances)
Education, vocational training
Financial services (money transactions, loans/credits, savings/deposits, shares/bonds)
Funeral plan insurance
Gambling (betting, gaming, bingo, lottery)
Health services (doctors, dentists, opticians, pharmacists & other health professionals)
Insurance
Medical treatment & care
Membership subscriptions
Postage stamps
Sports activities & physical education
TV licence

 

A couple of these items make sense but most of them are just outright bonkers, ludicrous, bizarre!

 

Interesting that you don't seem to understand the difference between zero rating and VAT exempt (it can make a HUGE difference)

Link to comment
Share on other sites

29 minutes ago, eco-boat said:

I think we can say that the terms VAT and luxury should not be associated.

My mistake. Sorry.

Thank you, now back to the matter of VAT on your boat.

I suggest that until you get a definitive statement from the VAT Inspectorate you do not assume that your boat is exempt, just on your calculations. If you are wrong then they will hit you and they will hit hard.

Link to comment
Share on other sites

38 minutes ago, philjw said:

You all need to get this concept of luxury items out of your head. It is not relevant to VAT. This red herring was brought up by the OP.

I know, but nothing really explains why books are 0% but e-books are 20%, apart from one is "printed matter" and the other isn't, why should "printed matter" get 0% rated?

Link to comment
Share on other sites

 We only have VAT as it was a condition laid down by the EC. Joining the EC was as you may recall a political hot potato. It was not palatable to be seen to be taxing education by imposing tax on books, many of which would be used in schools, and there was probably pressure from newspaper proprietors.

Link to comment
Share on other sites

9 minutes ago, philjw said:

We only have VAT as it was a condition laid down by the EC. Joining the EC was as you may recall a political hot potato.

 

Indeed it was. 

 

Nice to see it has all calmed down now, though.

 

  • Haha 4
Link to comment
Share on other sites

5 minutes ago, Mike the Boilerman said:

Nice to see it has all calmed down now, though.

Well it's only been 45 years.  These things take time you know. 
I refuse to get into the Brexit debate. Let's leave that to Mr Smelly & Co

Link to comment
Share on other sites

1 hour ago, zenataomm said:

…… if it ain't in writing from the department that has The Delegated Authority to say so, then it ain't necessarily so.

The repercussions to you personally I wouldn't wish upon Corbyn.

Quite, but it appears that Mr Ecoboat doesn't want to listen to that suggestion.

Link to comment
Share on other sites

3 hours ago, philjw said:

Well it's only been 45 years.  These things take time you know. 
I refuse to get into the Brexit debate. Let's leave that to Mr Smelly & Co

Theres nowt to debate...................we just need to educate the minority...............................................

Link to comment
Share on other sites

Two thoughts after looking at the blog: VAT, as has been mentioned already, is not a tax on luxury purchases but on goods and services. The second thought is that HRMC people can read and do read blogs, forums etc. I know this from bitter experience (no, they didn't "win" but they did make life pretty miserable for a time). Moreover they love unusual cases and Mark seems to be enjoying doing whatever he can to buck the system. This is fine, all power to you Mark, I hope you succeed since your aims to lead an environmentally friendly life are laudable. The advice to check with HMRC first before they come at you with all guns blazing is sound. Imagine the cost and worry if you get in to some sort of legal test case with them. Of course, they should be chasing much bigger fish, but the people with super yachts and super incomes to match, employ the best tax brains they can find (often former government tax inspectors), so the inspectors prefer to pluck at the low hanging fruit where they can. As others have said, they're not to be messed with, unless you consider it sport to bang your head on a concrete wall. That's probably more than two thoughts.

Edited by Earthwatcher
Omitted a comma!
Link to comment
Share on other sites

11 minutes ago, BruceinSanity said:

And the best approach to them is always “I’m not sure about this, please can you help me?” Not “I’m going to tell you what the regs say”.

Quite and exactly what several of us have advised.

Link to comment
Share on other sites

I've read through this thread and have looked a the HMRC site etc.   Rather go down the OP intended route, I would rather attempt the channel in a balsa wood canoe stuck together with a prit stick.

OP I think your on a very sticky wicket unless you have it by official email or by royal mail

  • Greenie 2
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.