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Horses’ mobile homes are the latest target for HMRC investigators in their efforts to weed out tax evaders, experts have warned.
The Revenue suspects that some farmers and other rural concerns dishonestly claim luxury horseboxes as business expenses, according to accountancy group UHY Hacker Young, while other countryside firms fail to declare personal use of the vehicles, to dodge tax on benefits in kind.
Horses’ mobile homes are the latest target for HMRC investigators in their efforts to weed out tax evaders, experts have warned.
The Revenue suspects that some farmers and other rural concerns dishonestly claim luxury horseboxes as business expenses, according to accountancy group UHY Hacker Young, while other countryside firms fail to declare personal use of the vehicles, to dodge tax on benefits in kind.
Motorised horseboxes are often worth hundreds of thousands of pounds: the one used by equestrian Zara Philips during the 2012 Olympics had capacity for six horses and was equipped with satellite television. It had an estimated value of £500,000.
Tax officials use their Connect computer system to quickly identify connections and discrepancies between official tax records and information from multiple third party sources, including DVLA databases and even Google Street View, claimed Charles Homan, partner at UHY Hacker Young.
He added, “Underpaid tax relating to horseboxes is a drop in the ocean, but HMRC seem to be focussing attention in this area because they can now be such valuable assets. It shows how determined investigators are to capture every inaccuracy in tax returns.”
“The Revenue is not just targeting big ticket tax avoidance. It has the database and software needed to clamp down on people from all walks of life,” said Homan, who warned that HMRC monitor horseboxes listed for sale in the classified advertisements of country lifestyle magazine, Horse & Hound.
Some owners may not realise tax charges apply on income from offloading a vehicle, he remarked.
