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Can a camper be a commercial/business vehicle for tax purposes ?

Discussion in 'MOTORHOME CHAT' started by Music And Laughter, Jan 3, 2013.

  1. Music And Laughter

    Music And Laughter

    Joined:
    Nov 20, 2012
    Location:
    UK
    Hi All I am a self employed (sole trader) and we need a camper to use as a mobile office while we are out and about at shows or events.

    We have found a suitable model, we were thinking of a Autocruise Rhythm Sport or something very similar. (This is a Boxer 335 Peugeot Panel Van base)

    I intend to kit it out with a couple of laptops, printer, WIFI and 3g etc so that I can still run my mail order business when away from home.

    I have been told that if the vehicle is a commercial vehicle then I can claim back the VAT on a new purchase as I am VAT registered and also as its a business expense I wont pay income tax on the purchase cost... (I think I read or heard that somehow you have to clam this back in stages as far as tax goes as the vehicle depreciates in value)...

    Has anyone bought a camper through thier buisiness before or could anyone give me any advice, trying to get any info out of HMRC is very difficult they are very unhelpful at out local offices they just say "look it up on the website" but I cant understand it all theres too much information.

    We were looking at buying used originally but if I can claim the VAT back and also the income tax I would have paid on the cost the savings would allow us to buy new...

    I havent bought a vehicle through my business before so dont really know whats what...

    Thanks for reading.
  2. GJH

    GJH Funster

    Joined:
    Aug 20, 2007
    Location:
    Acklam, Tees-side
    We have some friends who are antiquarean book dealers and they use their van for some events they go to. Also, plenty of people at antique fairs use motorhomes so presumably they are business vehicles.

    You have to insure the vehicle for business purposes though and some insurers won't do that for motorhomes so you may have to look around. I don't know about the tax position I'm afraid but I always found HMRC helpful with queries when we ran a small business.
  3. paulmold

    paulmold Funster

    Joined:
    Jun 15, 2009
    Location:
    North Wales
    If you haven't got an accountant, then I would suggest you get one. mine has saved me more each year than the cost of his bill. They know what is claimable and what is not.
  4. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

    Joined:
    Jan 5, 2008
    Location:
    East Sussex 01-580-881288
    Welcome to Fun, small world is it not as you asked me the same question on ebay about our AutoCruise Rhythm :Rofl1::Rofl1:

    Have a chat to Gill, she is our VAT expert

    Peter
  5. Merc0385

    Merc0385 Funster

    Joined:
    Mar 29, 2011
    Location:
    Rugby UK
    Thats the first job BUT if you are VAT registered you should have one anyway, all new campers/motorhomes have VAT included and if the vehicle is purchased through the business for business use you can claim the VAT back as a business expence, the vehicle then becomes an assett of the business and if it is sold 20% of the sale price would have to be repaid to the revenue.

    You may be called upom at some point to justify this claim if you have a VAT check.

    On used campers/motorhomes the VAT element only relates to the margin the dealer makes when selling it which means no VAT to claim back.

    The exception to this is when buying a used one from someone who purchased it through their business which is the first point above.

    dave
    Last edited: Jan 3, 2013
    1 person likes this.
  6. Wildman

    Wildman Funster

    Joined:
    May 30, 2008
    Location:
    Ilfracombe, Devon
    one thing that has not been mentioned is weight an licence requirements, if over 3500kgs then it will be an HGV and not a PHGV you will need a heavy goods driving licence you will also have to tax it accordingly and have a tacho fitted I think. Someone in the know will spell it out for you.
  7. lesleyjean

    lesleyjean Funster

    Joined:
    Jun 21, 2008
    Location:
    Devon
    Roger:BigGrin:

    My motorhome is over 3500 kgs and is registered PHGV

    And I do not have a heavy goods license.:BigGrin:




  8. Wildman

    Wildman Funster

    Joined:
    May 30, 2008
    Location:
    Ilfracombe, Devon
    you do not use it for business simples so it is PHGV
  9. lesleyjean

    lesleyjean Funster

    Joined:
    Jun 21, 2008
    Location:
    Devon
    :BigGrin::BigGrin:That's what you think:BigGrin::Laughing:


  10. Wildman

    Wildman Funster

    Joined:
    May 30, 2008
    Location:
    Ilfracombe, Devon
    what game do you think your on????
    PS don't forget my 5pm appointment
    1 person likes this.
  11. Ralph-n-Bev

    Ralph-n-Bev Funster

    Joined:
    Nov 30, 2009
    Location:
    Wakefield
    I sometimes use mine to stay in while away on business.

    My accountant advised me to buy it privately and rent it to my company :thumb:

    This may be a better way to do it and save any difficult questions if you have a vat inspection

    Good Luck.....Ralph
  12. aba

    aba Funster

    Joined:
    Oct 27, 2009
    Location:
    yorkshire
    does that mean it has to be insured twice ???? once for personal use and again through the business ?? or does the business insurance cover it for personal use ???
    1 person likes this.
  13. jackierals

    jackierals

    Joined:
    May 17, 2012
    Location:
    kent
    Many years ago at college, I was taught that you are not allowed to reclaim the VAT if there will be any element of private use on a fixed asset. Maybe the rules have changed now!
  14. Traveller_HA5_3DOM

    Traveller_HA5_3DOM Funster

    Joined:
    Jul 13, 2012
    Location:
    Following the Sun
    You may also find that the class 4 MOT test is not relevant for a vehicle over 3.5 tonnes carrying goods if stopped in a roadside check. The motorhome exemption for the MOT only applies to goods carried that are necessary for the journey.
    The hmrc website http://www.hmrc.gov.uk/vat/sectors/motors/what-is-car.htm gives more info.
    I seem to remember that the some of the testers are aware of the need to inquire as to the use that a motorhome with a goods carrying area (garage). If you do state to them that you carry goods it moves you out of the class 4 test criteria.
    I would guess that if on the one hand you tell the VAT man you carry goods to get the VAT back it could be difficult to argue that you do not carry goods for an MOT.

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