Tax / Accommodation / Boat

ZipZip86

I run a small business which conducts 99% of its work in London. I live 100+ miles from London, so my accommodation, parking, sustenance expense are reasonably high, and ever increasing. 

With the goal of reducing this expense, I am looking into the company purchasing a narrrowboat, in London, to use as accommodation. This would be on a permanent mooring, used solely for accommodation. 

I’m aware there are potential BIK implications with boats, however as it wouldn’t be used for anything other than accommodation during short term contracts, I’m unsure what would apply here. 

Some boats I’m looking at have non-functional engines, so quite literally couldn’t be used as a leisure craft. 

Any advice appreciated as there is very little info on this specific subject. 

Jeremy535897

The benefit in kind for the use of a company asset like a yacht or a plane is 20% of the cost per annum. The company employer can claim capital allowances on the plant.

It would be fun to try to argue that a permanently moored boat is accommodation for the purposes of the benefits legislation, but I can't see that it is a logical reading of the legislation. HMRC assumes that the rules on accommodation apply to land.

So long as you are only provided with the keys to access the boat when you want to use it (and this is rigorously enforced) you may be able to restrict the benefit to the times you are able to occupy it, but HMRC are likely to resist this sort of argument, particularly in the case where you run the company.