Using a horse as a mode of transport....

Sarah-Lou

My friend works from home, she lives in the middle of the countryside and uses a horse every day (sometimes more than once a day) to take her wares to the post office (her only method of sale). She doesn't use her car for this at all.

Obviously the horse isn't wholly and exclusively for the business however, can she claim a small percentage of his costs or is this just getting into something silly?

Sarah-Lou

imeldabye

hmm well I would say no, because the act of going to the post office and back every day is excercising her horse.

JodieR

imeldabye wrote: »

hmm well I would say no, because the act of going to the post office and back every day is excercising her horse.

Riding a bike it exercising yourself but you can still claim 20p per mile for it! Never come accross a horse situation though, don't know if the 20p per mile could be claimed as well.

Sarah-Lou

I might give HMRC a ring and see what they have to say!

uknitty

It's an interesting question - but not one I know the answer to !

I would say based on this list that the answer would be no ? The relief is based on classes of "vehicles" as opposed to classes of "transportation".

http://www.hmrc.gov.uk/rates/travel.htm

clegganator

I asked this question on accounting web in June last year
http://www.accountingweb.co.uk/anyanswers/pony-miles/504859

Didn't get a good answer, just some very silly responses...

PGM

JodieR wrote: »

Riding a bike it exercising yourself but you can still claim 20p per mile for it! Never come accross a horse situation though, don't know if the 20p per mile could be claimed as well.

And it is wear and tear with the bike.. But maybe you could say the same for the sadle & horse shoes etc

deanshepherd

Fabulous!

I would say the issue is one of measureability (if that is even a word..!).

The default position is that any cost that has duality of purpose (business and personal) cannot be claimed as a deduction UNLESS you can apportion the costs with a reasonable degree of accuracy. Cars have an odometer hence why you can apportion business and private journeys with reasonable accuracy. A little trickier with horses but I would be tempted to come up with some reasonable method of apportionment and give it a go.

PGM

deanshepherd wrote: »

I would be tempted to come up with some reasonable method of apportionment and give it a go.

And I'd be tempted for it to be at least the same as the 20p rate for bikes.

It'd be asinine of HMRC to reject that, but it wouldn't come as a surprise!

deanshepherd

With what justification?

What has a horse got to do with a bike?

clegganator

Horses are far more expensive to run(?) than bikes. Food, shoes, stable rental, worming tablets etc. A bike you just need some WD40 and an inner tube! No way would .20p a mile cover a horse! Perhaps sticking all the expenses in and apportioning for personal use, I imagine it would be quite an adjustment.

Also, where would a subbie store his horse on site?

Slightly off subject, I've seen builders who take dogs on site and the only use I can see is to wipe their dirty hands on them. Does the dog and the associated costs go under cleaning and laundry?

Monsoon

deanshepherd wrote: »

Fabulous!

I would say the issue is one of measureability (if that is even a word..!).

The default position is that any cost that has duality of purpose (business and personal) cannot be claimed as a deduction UNLESS you can apportion the costs with a reasonable degree of accuracy. Cars have an odometer hence why you can apportion business and private journeys with reasonable accuracy. A little trickier with horses but I would be tempted to come up with some reasonable method of apportionment and give it a go.

This.

Like a car on the acutal axpenses apportionment basis, I would keep a record of miles ridden, those ridden for work/ pleasure and apportion. A bit of a faff, estimating how long your weekend hack was, or morning trot round the school, but it might be worth it.

Edit: might be better/ easier to use a time-apportionment basis?

PGM

deanshepherd wrote: »

With what justification?

What has a horse got to do with a bike?

clegganator wrote: »

Horses are far more expensive to run(?) than bikes. Food, shoes, stable rental, worming tablets etc. A bike you just need some WD40 and an inner tube!

This sums it up.

If you can't get the same for a horse then theres something wrong somewhere! Am I missing something Dean?

deanshepherd

Ah I see, I misunderstood.

I thought you were suggesting going to HMRC with the argument that "Well, you get 20p a mile for a bike so I want the same for my horse."

I've seen builders who take dogs on site and the only use I can see is to wipe their dirty hands on them.

Hilarious! Every tree surgeon I know does the same!

T.C.

I would simply proportion the expenses, eg business use 10%, private use 90%. The same would apply for capitalising the cost of the horse (vehicle).

anniem

I'm waiting for the bit about fuel scale charge on the emissions produced by the '1 horse power' horse' Mind you horse food/fuel used by horse doesn't incur VAT!

T.C.

I used to carry out the accounts for a horse-drawn funeral business and, basically, the horses were treated as vehicles for the purposes of tax.