Adventure kit

[BarryHayes]

Hi!

So I recently set up my own business, and as someone that's not done anything like that it's all a bit bewildering to me. So I'm hoping for your help, and please excuse me if I say anything too stupid (genuinely very little idea what I'm doing!)

In short, I rowed across the Pacific Ocean last year, and my business is to go into corporations and provide motivational speeches based upon my adventures, also I'm writing a book.

45 days at sea in a rowing boat killed off pretty much all of my kit due to salt water damage, and I've not been able to afford to replace any of it due to the debts accrued from that expedition. In order for my business talks to stay relevant/current, I need to continue adventuring, but in order to do that I need kit (Jacket, pack, etc)

My question is, can that kit be bought out of my business funds, or should it be bought from my personal funds? I appreciate that I could just pay myself more out of the business to afford these things but then that's a tax hit.....or is that tax evasion/avoidance?! I'm really keen to not get myself into any trouble with the taxman out of stupidity!

Many thanks,

Barry

[RMC]

As you are in business and expect to be making profits out of your Pacific Ocean adventure, in my opinion you should be able to claim capital allowances for the cost of the original kit and boat, and also for any replacements assuming you want to carry on to use these for adventures you will be lecturing or writing about.
http://www.hmrc.gov.uk/manuals/camanual/CA23020.htm
You might also wish to register for VAT as intending trader and reclaim input VAT.

Because of high company compliance costs, it would be easier to carry on the trade of exploitation of your ocean rowing experiences as self-employment.

HMRC sometimes argue that activities such yours are only a hobby, but, as you will be trying to profit out of it…

BTW where do your business funds come from?

[bd6759]

The row across the pacific was to raise money for charity, not to make a profit. Any costs you incurred doing that would not be allowed as a business expense.

The same would probably apply to any future adventures. The costs would not be solely for the purposes of a trade.

[LozaACCS]

Where does the OP state that the adventure was for charity.

[bd6759]

Where does the OP state that the adventure was for charity.

He uses his real name. Google is your friend!

[RMC]

I doubt that the boat and kit were donated to charity – they belong (and, presumably, always have belonged) to the querist, to do as he wishes.
My friends challenged me to file all my clients’ tax returns on time, pledging £x to charity for each return so filed. Does this make my new laptop and filing software charity assets ineligible for capital allowances?

[bd6759]

I doubt that the boat and kit were donated to charity – they belong (and, presumably, always have belonged) to the querist, to do as he wishes.
My friends challenged me to file all my clients’ tax returns on time, pledging £x to charity for each return so filed. Does this make my new laptop and filing software charity assets ineligible for capital allowances?

Surely you can see the difference.

[LozaACCS]

I have not researched Mr Hayes activities, nor do I think it correct for others to do so, If the question put to us is on the basis that he is pursuing a business activity then the advice offered should be provided on that basis, RMC,s post is therefore correct in my opinion, although I am not sure I follow the logic of the later post.
If it is known that a charity is involved, then this may affect the position, either by negating the OP,s statement completely or by raising issues where there is a duality of purpose, I think it is up to the OP to seek further advice or opinions on these matters.

[BarryHayes]

Apologies for my lack of response, the New Year seems to have flown by!

To answer the questions as wholly as possible:

I'm not intending to make money directly from the Pacific Row, that was a personal adventure, which I used to broaden my own horizons and to test my self mentally/physically. We did manage to make some money for charity too which was nice. I am not intending to profit from it, far from it, I'm in the hole for tens of thousands of pounds of personal loans which I will pay off according to the pre-agreed schedule and out of my personal funds. The boat was not mine, it was borrowed, the kit that I lost, was my own personal loss.

When I got back from that adventure people were keen to hear me speak about how an ordinary man that works in a mailroom can take on and successfully achieve that sort of task...hence the idea for the business being born...so my business is based upon my me, and my ongoing story.

My business was not registered until September 2015. And my business funds have come from my talks. I bought some items prior to getting any business funds out of my personal money to enable me to start up (laptop, projector, screen, etc) which I then sold to my business once it was registered (I obviously made a loss here because the items were now technically second hand, so I used ebay to get a fair valuation of my kit when I sold it to the business).

Future adventures, I hope, can be part of my business, at least in part, my business doesn't exist without me continuing to do adventures, people aren't that interested in someone that did that one thing 25 years ago and then just got fat on pizza....it's not that motivational!!

So, if we take it that I have nothing, but I need items in order to continue fuelling my talks, (jacket, backpack, etc) should this be out of my personal funds or out of my business funds...and if it's a really complicated answer that we're not sure of, would you know who I would need to speak to? Financial advisor, presumably?!

Thanks very much for your thoughts so far, it's really appreciated

[BarryHayes]

Sorry, meant to add in response to RMC that I am voluntarily VAT registered, and I'm also on the Flat Rate Scheme.