Buying an ex vat paid boat in the uk.

**Jim@sea** · 28-04-12, 06:24

is it really worth the hassle. what happens if you buy it at £220K and want to pay the VAT and the VAT people say that they think its worth £300K and they want VAT on that.

**oldgit** · 28-04-12, 08:52

"Or am I just better to buy a uk boat that's vat paid."

You will then not have to get involved in the pain of making up a VAT return every quarter or whenever you choose to do it with the added frisson as to if and when a visit from the VAT inspector will ruin an otherwise perfectly good day.
They may also wish to have a quick look at any other related business activities while they are at it.

**Tranona** · 28-04-12, 09:32

Originally Posted by Jim@sea

is it really worth the hassle. what happens if you buy it at £220K and want to pay the VAT and the VAT people say that they think its worth £300K and they want VAT on that.

That won't happen, because the vendor will account for the VAT on the sales price. The risk of valuation will only arise if the boat is imported and VAT comes due on valuation - however, if it has just been purchased, that would be the purchse price.

**henryf** · 28-04-12, 11:10

Originally Posted by Tranona

Obviously the actual value of a charter boat may well be lower than a private boat, but the principle is the same.

I'm not sure I agree with that. Given the cost of coding (properly) is significant and it is a bit of hassle to sort out a coded boat could well be worth more.

It means someone can supplement ownership costs and potentially save The VAT element from a cash flow perspective. Funding may not have to come from an income taxed source either. So a coded boat may well become affordable in a way a non coded boat isn't.

Yes, if you pile on 12 or 14 drunkards every time and target stag / hen partys then your boat may get trashed (although there is an argument you might keep on top of maintenance more than a private owner) but not all charter boats operate to that model.

Henry

Just to add: A VAT qualifying second hand boat also has massive appeal to foreign buyers wishing to export.

**alteredoutlook** · 28-04-12, 11:19

I was always told that the VAT amount due was based upon the value that the Inland revenue assessed it at. And that certain items (possibly sails?) were not included in the valuation. Perhaps it might be an idea to contact hmrc to get their view on it?

Also, you could always 'remove' non essential items e.g. outboards, dinghies, etc. prior to it being assessed......

**Crabman** · 28-04-12, 11:28

To register for VAT you would have to go over the threshhold to be considered for vat. Is it £22k earnings from a business? The asset ,boat is different. Unless you are sure ,they will nab you. Dont forget they can inspect the boat at any time they like.I would pay the vat ,that way the boat becomes more valuble and easy to sell on.

**jfm** · 28-04-12, 11:54

Originally Posted by alteredoutlook

I was always told that the VAT amount due was based upon the value that the Inland revenue assessed it at. And that certain items (possibly sails?) were not included in the valuation. Perhaps it might be an idea to contact hmrc to get their view on it?

Also, you could always 'remove' non essential items e.g. outboards, dinghies, etc. prior to it being assessed......

It is truly astonishing what utter bollox is written about VAT on here

You'll never guess, but I bought a telly from Currys last week. Massive plasma job. Cost £600. Next day HMRC came around and assessed it and said I got it too cheap. They charged me an extra £75 VAT which I had to pay personally or they threatened to seize the TV. Would you imagine that eh?

**benjenbav** · 28-04-12, 12:00

Originally Posted by jfm

It is truly astonishing what utter bollox is written about VAT on here

You'll never guess, but I bought a telly from Currys last week. Massive plasma job. Cost £600. Next day HMRC came around and assessed it and said I got it too cheap. They charged me an extra £75 VAT which I had to pay personally or they threatened to seize the TV. Would you imagine that eh?

Nevermind. There's nothing much on. And you can watch it on the lappie, anyway.

**DougH** · 28-04-12, 12:04

Originally Posted by jfm

It is truly astonishing what utter bollox is written about VAT on here

Now,now John calm down, remember that summer is nearly here and concentrate on that.

It was very funny though and the thought of you swearing and cursing as you wrote the message is still making me chuckle.