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  1. #31
    jfm's Avatar
    jfm is offline Registered User
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    Quote Originally Posted by henryf View Post
    If you buy the boat through your business for personal use then you get taxed as a benefit in kind at 20% of the boat's value. I think I'm correct in saying.
    Henry
    Only if your business is constituted as a company. Which it doesn't have to be. And it is the boat's cost, not value. And it is per day of availability. IE the BIK is 20%/365 per day the boat is availalbe for your use
    Last edited by jfm; 29-04-12 at 11:15.

  2. #32
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    Hurricane is offline Registered User
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    Quote Originally Posted by jfm View Post
    Only if your business is constituted as a company. Which it doesn't have to be. And it is the boat's cost, not value. And it is per day of availability. IE the BIK is 20%/365 per day the boat is availalbe for your use
    Wouldn't any BIK be grossed up (i.e. turned into a value that you would have had to earn to obtain that value)?
    I.e. declared on your tax return.

  3. #33
    jfm's Avatar
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    Quote Originally Posted by Hurricane View Post
    Wouldn't any BIK be grossed up (i.e. turned into a value that you would have had to earn to obtain that value)?
    No, hardly ever. That would only happen if the company agreed to pay the tax on behalf of the boat user, but that would be a dumb thing to do. Ordinarily the person getting the benefit would pay the tax

    Quote Originally Posted by Hurricane View Post
    I.e. declared on your tax return.
    Yes

    But, I repeat, this BIK tax is only relevant if you form a company. And even then it's easy to avoid. The tricky part here where one needs a clever solution is the VAT

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