Any one vat registered for their stalking business?

[Mickeydredd]

If you've got a separate vehicle that you use solely in connection with your business then that side of things is easy - you just put all the costs through. However, if it's a vehicle that's also used for domestic purposes then you're getting into the realms of percentage use, which gets a bit more complicated. There are some restrictions on what you can / can't claim, and what percentage is allowable.

You can however register for personal use of the vehicle and from memory the taxable Benefit In Kind is circa £3.5k so if you are a basic rate taxpayer then you will only pay around £700 in tax on it at the end of the tax year. Given you can easily run up £100 in fuel per week, it is a pretty good option to keep yourself right tax-wise.

 

[Sharpie]

You can however register for personal use of the vehicle and from memory the taxable Benefit In Kind is circa £3.5k so if you are a basic rate taxpayer then you will only pay around £700 in tax on it at the end of the tax year. Given you can easily run up £100 in fuel per week, it is a pretty good option to keep yourself right tax-wise.

Benefit in Kind is an interesting thing, that any competent accountant ought to know about. The rate you pay depends, your figure sounds like at the upper end, for an ICE vehicle.

It is particularly advantageous for those running pure EVs, or plug-in hybrids with some actual useful range. Though I think that the hybrids are going to be knocked back from the scheme. Because very few actually ever plug them in, so they are basically a sham.

A explanation: EV: Tax Benefits



I used to run my car, and my van, through my business, All worked well, but that was some years ago. However I have since stopped running a business, other than for my consultancy services as a sole trader and manage my own tax affairs without need for an accountant.

My chums with EVs (three Teslas, one VW, one BMW) continue to do so, and basically pay almost nothing for their personal use, and offset their business use against various taxes, likewise basically zero cost. This is not fraudulent, everything is legit.

Likewise my Sister in law runs her and her husbands business (installing PV panels, heat pumps, and Tesla Power Walls) running a small fleet of pure EV vans and cars, to similar effect. Their vans are pretty impressive in how practical they are to run, range, servicing and lease costs.

Interestingly, just this week, I was visited by EDF to sort out a failed smartmeter installation at my house, they sent the area manager, and his "engineer". Who rocked up promptly, the manager in his top-end BMW EV, and the fitter in his EV van. Whilst the fitter got on with the job (much better meter, compatible with grid tied solar and EV charging, (a future plan), plus a big external antenna so that it could actually communicate in my poor signal area, the initial problem with the first one) I had a good long chat with the manager about all sorts of modern electric developments, whilst the fitter cracked on, for three hours. Both of them had travelled almost 100 miles to me, and would have the same trip to get back home. Both confident that their car, and van, would make it, and be fit again next morning.

Upgraded my supply from 45A to 100A whilst they were at it, not that I intend to draw that much, on average. However if everyone on the street wanted that much, they couldn't supply it. to everyone. Altogether a good experience

 

[Mickeydredd]

I have used the term BIK, rather than the taxable benefit, in error as you are talking more about the taxable BIK for taking out the option of a company car. What I used to do in my company, as a director, was rather than have all the hassle over splitting company and personal use elements I elected to be taxed on the benefit of having full personal use and associated fuel of the business pickup.

 

[wytonpjs]

That's very sneaky.....................

Going down this route it works!

Resurrecting an old thread, and with very grateful thanks to @VSS, @Woodenbeam and others of the SD Community, I set up my own company, registered for VAT and have just received my input VAT backdated to setting up the company Yes, it was a faff and MTD added another complication but, having just received a 4-figure payout from HMRC, I'm very glad I persevered

 

[Woodenbeam]

Glad that went well. MTD added another pita level to keeping your own accounts etc but I’m using Vatify for my quarterly submissions which does work okay especially as it’s a freebie

 

[Pete6.5]

I wouldn't be a professional deer manager if I couldn't be vat registered it helps make it workable. It also helps that my other business is vat registered.

 

[scotch_egg]

Glad that went well. MTD added another pita level to keeping your own accounts etc but I’m using Vatify for my quarterly submissions which does work okay especially as it’s a freebie

The link to free accounting software is helpful for folk.

 

[wytonpjs]

I’m actually using My Tax Digital as suggested by @VSS - very straightforward

 

[co’den]

However, another more realistic option I’m probably going to go down is set up as self employed. I can declare all my expenses and offset those against the tax I pay through my main employment.

I’m resurrecting an old thread here but I’m curious if you managed to make this work.

I’m employed but I also run a small part time business on a self employed VAT registered basis. I’ve never managed to get to a point where the business could develop into anything other than a hobby as the income tax has never worked out in my favour. However the VAT has worked well so it’s been worth keeping the business active at some level.
I’m currently looking at converting the self employed business to a Limited company so I can separate the tax burden from my full time employment.

Cracking thread by the way.

 

[Pete6.5]

Another question if I may for those with a businesses registered for this purpose - is there a list of what is a legitimate business expenditure anywhere; specifically the stalking side of things?

So far I've got:
- Quad and fuel (used solely for the business)
- Ammunition
- Packaging
- Electricity to run chiller
- Mileage to/from stalking

What about stalking fees and lease fees? Some of my ground is free but could I put a stalking outing and carcass fee through my company too? I can't find any reason why not but thought it worth a check.

I'm trying to keep everything nice and tidy from an accounting perspective and use a separate bank account for everything related to the business so I just want to try and get my head around stuff in advance. Whilst my accountant is pretty good, he's not clued up on stalking itself.

The next step if stalking is a sideline and not your main business is to think about putting the profit from it into a pension then you won't have to pay corporation and dividend tax if set up as a Ltd company. You can claim the Income tax back if just normal self employed.

 

[75]

I’m resurrecting an old thread here but I’m curious if you managed to make this work.

I’m employed but I also run a small part time business on a self employed VAT registered basis. I’ve never managed to get to a point where the business could develop into anything other than a hobby as the income tax has never worked out in my favour. However the VAT has worked well so it’s been worth keeping the business active at some level.
I’m currently looking at converting the self employed business to a Limited company so I can separate the tax burden from my full time employment.

Cracking thread by the way.

Yep, I’m a vat registered sole trader now. I reclaim any VAT I pay on stalking items and can offset any losses with my stalking business against tax I pay on my primary (PAYE) income. But I also pay tax on any stalking income (but not VAT - primary food production is zero rated).

However, my accountant was clear to stress the HMRC don’t allow you to operate in this way as a hobby. I don’t recall the exact terms he used but they are quite sharp on it. I have gone through all the steps of registering as a food business, investing in a big chiller etc so I’m comfortable I can demonstrate this is more than me reclaiming VAT on toys for my hobby.

 

[wytonpjs]

^^^^^ Exactly this, although my limited company registered food business is not my main income. To meet the “more than a hobby test”, I supply a farm shop and do farmer’s markets as well as direct sales. My business is making a loss but the trajectory is improving greatly in my favour but at the moment, the reclaimed input VAT greatly helps. I’m also set up to provides services on which I would pay VAT, but that’s further down my business pipeline after I retire from my main income.

 

[sikamalc]

As some have mentioned, being VAT registered can be useful, but on the other hand not.
You can become VAT registered voluntarily, you do not have to reach the VAT limit. (I think its 90k now?)

De registering can be a nightmare, or so I've been told.

Returns are every quarter. But you would need to charge 20% on all your outing fees. You can reclaim the VAT on a vehicle, plus a percentage each year for wear and tear. However you would need to balance the benefits of this against the charges you make to clients.