[QUOTE=andyace] The vat advice centre said
It is perfectly ok for an amateur dive club to reclaim all vat and excise on all fuel used in the pursuit of diving.
So get your EX50 or HO50 forms and get claiming..........
The final definition will be for pleasure or commercial purposes. If the diving is for pleasure and HMC&E agree with the rebate then anyone with a pleasure boat can claim.
If you claim it is commercial then you need to look towards coding the vessel and thus forming the dive club as a business. For this you will all need to hire the boat from the business and the inland revenue will also look at the issue of personal use.
I suggest that a careful look or discussion is made with the MCA on the definition of commercial/pleasure as the issues of club use have been well looked at.
HMC&E normally look at a VAT reg no. for the claim. Otherwise there is the definition as to whether it is a bonafide commercial vessel and under VAT rules this was considered as a vessel licenced for the conveyance of 12 pax or more. It has been suggested that this may be relaxed to 10 pax or more but I have no confirmation of this.
I was the one many years ago that pushed and suceeded in the duty claim for small passenger vessels when it only applied to fishing vessels. I have many times warned against abuse of the system and at the end of the day it is for commercial users to compete equaly against those using red d.
So if the club wants to form a proper business with the true intention to trade, make a profit and thus declare all charges to members, and declare wreck and other gains then no problem in my mind. However if it is a dodge that may damage the genuine commercial sector then please do not expect any sympathy.
Do remember my first point "If the diving is for pleasure and HMC&E agree with the rebate then anyone with a pleasure boat can claim."
... That means all and sundry ?
Of course if proven otherwise I will humbly bow !