Rental insurance

[Pat Clarke]

I'm looking at purchasing a 6 berth motor Cruiser and putting it on the river Shannon in Ireland, I'd like to put the purchase cost through my company. However to do this I have to show that the cruiser can return a value to the company by way of rental income. So I'm thinking that the boat could be rented out for 4-6 weeks each summer. Problem is there seems to be very few insurance companies that will to cover commercial rental. Anyone know of any insurance companies (that operate in Ireland) that would cover this type of use ?

regards
Pat

[goboatingnow]

I would seek specific Revenue approval beforehand. Being subsequently accessed for BIK or self supply VAT plus penalties could add up to more then the boat.

Your existing company will need to be in “ the business of chartering boats. “ or Revenue will see it as a tax dodge

Tread very carefully. It must be a proper charter business

Part time commercial charter insurance on a one off boat can be very expensive.

A few people are doing this where u are , there’s an operation on a big Fairline operating out of kincora marina in killaloe , worth speaking to them


Again I strongly suggest you seek revenue approval. schemes were people try and hide untaxed income in boats are well understood by Revenue and the bik issue is real and a problem ( 30 % of its value per annum added to your income and taxed. ) it’s not sufficient to show the boat has “ income “. Revenue will view a “ hobby business “ with a very jaundiced eye and you could bring down a complete revenue audit of your business and nobody wants that.

[Manateeman]

If you were a licensed professional captain who could meet all the legal requirements and the vessel could meet them as well, then the decision to insure you would likely be based on two factors. You experience and the case history of claims against any insurance company who writes policies in a similar market.
They have experts who are very good at assessing risk. They always look at the downside first. Something is sending them up red flags and I’d find out what rather than trying to find a less than five star company.
Maybe this project is a bit more complex than you see from your perspective.
Happy trails to you.
The manatee crew.

[goboatingnow]

The reality is post Brexit with most of U.K. insurers withdrawing from Ireland and many mainstream insurers ( like Zurich ) not writing boat policies , you have two brokers CraftInsure and Yachtmans. If these arnt suitable you are very short of options

It will also depend on whether you intend to offer crewed or bareboat charters

Bareboat is actually simpler, as there are no commercial implications as it’s a grey area in Ireland.

Crewed charters are entirely different and will require a commercially coded boat , no professional qualifications are needed under 12pax ( this legislation changed a few years ago so I may be out of date, you could need at least powerboat level 2)

[Pat Clarke]

Thanks for the heads up and I will check out the Kincora Fairline if I can track them down. I have already run this by my accountant who was skeptical at first but since checking it out in detail has given the green light. My company already has a number of diverse trading subsidiaries and this would be added on.

[goboatingnow]

You can’t miss the boat in Kincora !! As it’s big. ( 55 I think )

I would be very careful Re the company wrapping. ( I’ve been there ) if you intend to use it personally your company will be legally obliged to declare and deduct the BIK ( it used to be only you personally had to declare it ) company accountants are usually compromised in offering advice. Your auditors might be a better source of advice.

It’s been tried a few times and become a mill stone for the owners who then used it for personal use as well.

It’s fine if your use is deemed “ incidental “ but thats very strictly interpreted by Revenue.

Note also that the typical transaction of a boat purchase will force your subsidiary into mandatory VAT registration this further complicated things.