Pacific 22 with a difference Rebuild

[Ian Austin]

Hi
I bought this from E bay a while ago, it was advertised as an Atlantic 21, didn't question it as it was orange hull and RNLI looking tubes, i only bought it as i had a spare set of tubes i had for my old Pacific 22, that i have now sold.

Once i started stripping it, i then realised that it wasn't an Atlantic but a Pacific 22 that had been modified to take twin outboards.

The deck had been fibre glassed over "badly" and the wood under was rotten, so main thing was to remove all the deck and cleaned all the compartments out, the STBD side was full of expanding foam, dug out 5 bin liners of foam and found that the side had had a big impact and also been repaired badly, all the old repair was removed and repaired from inside instead of pushing handfuls of filler in from the outside as it had looked like had been done before.

I left it untouched for nearly a year as i couldn't find either a high horse power inboard diesel or a reasonably priced pair of outboards.
But since owning the Humber and having a big outboard strapped to it's ass, it's going to have twin 150's plus on the back of this one.

This is the link to my photobucket gallery. Pacific 22 strip and rebuild pictures by ian-sw - Photobucket

[spartacus]

Daunting prospect, when you look at first pictures. Build looks to be progressing well - keep the pictures coming.

[Maximus]

Originally Posted by spartacus

Daunting prospect, when you look at first pictures. Build looks to be progressing well - keep the pictures coming.

Best of luck with the re-build! They built those things like Nuke Bukers,you can always get some inspiration from Martini's Atlantic build if you start Flagging!

[Ian Austin]

Cheers guy's
I have a very good inspiration at the moment, it's called a Humber, i had a call out a month or so ago, weather was not the greatest force 6-7 left Plymouth bound for Salcombe, could not manage more than 18knts and still spent more time out of the water than in, then after rounding the headland at Salcombe there were some BIG waves 4-5 mtrs, slowed to 5-6 knts then a wave pushed me and the rib straight under and from that day i have all the inspiration i need to finish the Pacific.

[martini]

Looks like you've got some work ahead of you there, shame you've not found a good diesel to chuck in her, I'd hate to run a pair of big twin o/b's at your fuel prices Let alone your fuel prices in 5 years time!

Look forward to seeing how she progresses

[Poly]

Martini,

You are forgetting that Ian is working commercially so can claim back all the duty / vat - so the cost per gallon is about the same.

[Ian Austin]

also was thinking about going VAT registered so i can claim the VAT back if i decide to buy a couple of new engines, i don't like doing paperwork now and have been told it adds another day a week for VAT paperwork, don't think it's worth it.

[Poly]

Ian,

It won't add a day a week unless you are a very busy business who should have been claiming VAT back years ago. Presumably you are already keeping accounts / books / records for your accountant and for HMRC (for fuel duty). If those are pretty thorough then you don't need to do much more for the VAT. As you are not already registered presumably your turnover is below the threshold (and therefore transaction volume is not that high). If you were doing it yourself, and a bit old school pen and paper type then I could see it taking a day a month. If you employ a half decent book keeper (s)he should be able to do it (usually once a quarter - but might prefer to keep on top of it every few week/month) for about 1 day's work a quarter - they should easily save the cost of employing someone to do it several times over in recovered input VAT, and they will take all that other accounting admin off your plate.

[Ian Austin]

Hi Polwart
I was not told i could claim back fuel duty until very recently, i had my Pacific for 7 years and never claimed any duty back, my accountant has never mentioned i was able to claim.
I do or my wife files stuff in month and category order, totals it all up and it then gets dropped off to the accountants, he sends me a bill and tax man sends me a bill

I have managed to keep under the Vat threshold, came close a couple of times though.

I think i may need to change accountant.

Ian

[martini]

Originally Posted by Polwart

Martini,

You are forgetting that Ian is working commercially so can claim back all the duty / vat - so the cost per gallon is about the same.

Thanks, didn't realise that. Although resale value could also be a consideration but Ian is probably in the same position as me and everyone else, the price of a complete diesel package big enough to push the boat along is nothing short of phenomenal

[Boats&Outboards]

I've had to go VAT reg this year and its a pain. I'm well over the threshold now as I thought in for a penny in for a pound and have increased my turnover to take account of the added costs.

Although I'm not a "busy business" in terms of daily work it's still a hassle in terms of paperwork.

As a sole trader - I've sold about 65 boats/outboards since going VAT in April and each one has a record. I'm hoping it's acceptable in accountancy terms but I refuse to pay the fees for them to do my returns. I've filed 2 VAT returns to date and they've both been ok. I'll get them audited at the end of each financial year so that will highlight any errors

If I could I'd jump at the chance to not be VAT reg but as the average boat sale is now around £8000 it's impossible to stay under that mark.

My advice is if you can avoid it (legally) do for as long as you can.

Buying the two new motors as a capital asset would only allow you to claim back up to £1,000 in the first year for tax. I'm not sure how the VAT works I assume you can get it all back in the first year.

[bpikeuk]

If your turnover is less than £150,000 pa you may be able to register for the flat rate VAT scheme. You can still claim back the VAT seperately for capital purchases with have a VAT inclusive cost of over £2000. More info on; http: HM Revenue & Customs: Flat Rate Scheme for VAT

I use this scheme and my VAT return takes me about 20 minutes, although I do keep accurate books which helps.

Barry

[Boats&Outboards]

The problem with flat rate for me is the value of each sale. it's great for low value sales. Also it's good if you have slot of Vat-able purchases. Mostly mine are private sellers so that's no good as there is no vat to reclaim

Flat rate on motor category (which is most suited to selling used boats) is around 8 or 12% on each sale price.

That's say £1,000 on a £10k sale which potentially only gave me say £1000 profit for arguments sake (not my figures just as an example). That means no profit.

I'm on the secondhand goods margin scheme so I pay 20% of my "margin" only. So if my same 10k sale yields £1,000 profit (again not my figures just easy example) that's only £200 VAT on the same sale. It has it's draw-backs though. For example if you buy a boat for £2,000 and spend £7,000 enhancing it with a new motor for example then sell it for £10,000 your margin is still £8,000 not the £,1000 profit you've actually made. The £7,000 you spent would have to be re-claimed via a separate VAT input assuming their is VAT to recover. If not you lose out on your margin.

My return takes no time either but im keeping good records too and seperating my input vat into sections which helps. Ive not been asked by HMRC to make them available for inspection yet but if they do im confident they can make sense of it all. They run free courses which I keep meaning to book onto just to see how better I could make it.

It's a minefield I tell ya. Avoid avoid aviod.

Peter ~ Boatsandoutboards4sale ~ askboatsandoutboards4sale@sky.com ~ 07930 421007

[bpikeuk]

Ouch, that looks, as you say, like a minefield.

I'm very much in the service industry and the flat rate scheme works really well.

I think the key is keeping your books accurate and up to date allowing you to lay your hands on all the figures.

Good luck,

Barry