Use of caravan while visit clients

Company caravan

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Morning. I have a legal consultant who travels from their home in Wales all around UK for court trials. He will spend a week for example in London,  then two weeks in Glasgow etc depending on the duration of court proceedings etc.  To save on hotels he wants to buy a caravan / motor home to use. It will only be used for staying near to long court hearings not for holidays. 

Could this be purchased through his limited company and claimed for capital allowances etc or would be be charged tax on it?  If he stayed in hotels there would be no problem,  but I've just hit a mental block. 

Or alternatively he could buy it personally, then charge a per night fee to the company when used for business? But the he'd have to register as a business.........

Many thanks.  

Replies (12)

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By JCresswellTax
02nd Sep 2016 09:51

You need to review the benefit in kind rules for assets made available to employees.

If it is used 100% for business, the end result will be no benefit in kind.

I would expect the company to be able to claim capital allowances on it.

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By mrme89
02nd Sep 2016 09:55

A benefit arises. But it is an exempt by virtue of s316 ITEPA 2003.

It is advisable to ensure that a caravan is purchased, and not a motorhome. A motorhome is treated as a car and the tax consequences will follow.

A caravan is plant, so CA's can be claimed.

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Glenn Martin
By Glenn Martin
02nd Sep 2016 11:32

From a business point of view is this not a false economy.

As a lawyer does he not re charge his expenses onto his clients anyway. If he was on a 2 week case in Glasgow he tows his caravan their from Wales it must take him a day each way to get it there at Lawyers rates that would be nuts.

If he does full 2 weeks cases he must be doing decent size cases with fees to match so this just seems an off request to try and claim some costs of his private holiday home.

If I was up front of the court for something serious I would hope my lawyer turned up fresh after a good nights sleep and ready to go not after having a rough night in a caravan and p*ssing in a field.

I have never heard Harvey Spector say I am just popping back to my Corniche to prepare for a case tomorrow.

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Replying to Glennzy:
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By Whinger
02nd Sep 2016 11:46

It's to save spending long nights on slepper trains and many many miles of travelling, so that he can arrive fresh and properly rested.

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Replying to Whinger:
Glenn Martin
By Glenn Martin
02nd Sep 2016 12:06

Quote:

It's to save spending long nights on slepper trains and many many miles of travelling, so that he can arrive fresh and properly rested.

Towing a carvan at 50mph from wales to Glasgow allows him to do that? when he could stay in a city centre hotel and walk to the court.

I am in Newcastle and can get a train to London in 2 hours 40 minutes arriving as fresh as a daisy.

I cannot imagine there are many caravan parks in city centres so he will still have a fair commute from the field he is sleeping in to the court.

He is clearly trying it on, HMRC will see it as the same if they ever looked at it.

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Replying to Glennzy:
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By Whinger
02nd Sep 2016 12:09

Ok. Thank you so much for your thoughts. I really appreciate it.

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By mrme89
02nd Sep 2016 12:21

6th post reveal.

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Replying to mrme89:
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By Whinger
02nd Sep 2016 12:35

?

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Replying to Whinger:
By mrme89
02nd Sep 2016 12:44

Quote:

?

When there are 6 posts, the 6th post is hidden until a 7th post is made.

Another of the sites improvements.

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Replying to mrme89:
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By Whinger
02nd Sep 2016 13:00

Aha! "Upgrades"!

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Replying to mrme89:
Stepurhan
By stepurhan
02nd Sep 2016 14:31

Quote:

Quote:

?

When there are 6 posts, the 6th post is hidden until a 7th post is made.

Another of the sites improvements.

I thought that had been fixed now.

https://www.accountingweb.co.uk/community/blogs/richard-hattersley/membe...

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Replying to stepurhan:
Red Kite
By Red Kite
02nd Sep 2016 14:36

Quote:

Quote:

Quote:

?

When there are 6 posts, the 6th post is hidden until a 7th post is made.

Another of the sites improvements.

I thought that had been fixed now.

https://www.accountingweb.co.uk/community/blogs/richard-hattersley/member...

Don't think "fixed" is in the Aweb vocabulary.

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