Horsebox owners beware

Horsebox owners beware! HMRC is pulling the reins on taxpayers it suspects are dishonestly
claiming horseboxes worth thousands of pounds as company expenses.

If you’re a farmer or rural business owner and don’t declare your personal use of the horsebox
and pay tax on it as “benefit in kind” you could be investigated.

Gone are the days when horseboxes were just a trailer with space for one or two horses to be
transported a short distance. Now they can be very luxurious, very valuable assets. During the last
Olympics boxes were worth up to £500,000 with capacity for six horses complete with its
own bedroom, kitchen and living room topped with satellite television!

There are lots of reasons why a farming or rural business requires the use of a horsebox
as they can be extremely effective with moving livestock and are a very multipurpose vehicle.
However, keep accurate records of its use and apportion personal use if used to transport the
family horse to the local point-to-point or indeed a week at pony club.

Remember HMRC uses DVLA databases, and even Google Street view (and yes they check EBay)
to monitor the lifestyle of suspected tax evaders and are not afraid of prosecuting.

Whilst the underpaid tax in respect of undeclared tax on horseboxes is likely to be small gains
for HMRC this campaign does show them galloping through in removing every loophole with
regards tax – even those some may class as small.

Mistakes on tax returns, whether genuine or accidental, are in the forefront of the Revenue
campaigns so if you have any concerns regarding disclosure on earlier year(s) returns
please call our office for advice on 01603 720424 and ask to speak to our personal tax advisor or
email eileen@hornbeam-accountancy.co.uk