Tax crackdown on horsebox owners

Horsebox owners are being warned to declare the full use of their vehicles, if they use them for business as well as pleasure.

Blurred lines

According to Fiona Hawkins, accountant at James Cowper Kreston, the use of horseboxes can often be “blurred between business and personal use”.

She advises that horsebox owners keep records of when and who used the horsebox, including estimated mileage and nature of use.

If you have been using a horsebox for both business and personal use, you should tell the HMRC, but take advice from your accountant first. Finally she recommends making sure VAT is being correctly accounted for if there is mixed personal and business use.

Penalties

“HMRC is unlikely to punish honest mistakes – it will simply require you to repay the tax that should have been payable,” Fiona said.

“However, if you mislead HMRC and depending on whether there is deliberate concealment or not, they can impose a penalty.”