MTD/ Machine only hire.

[Steve Blackdog]

Hello folks,

I have a wee plant hire business. I have a U17-3a, that spends most of its life sitting idle. I have been hiring it out from time to time to local guys I know and trust. I use CPA terms. They are all covered for hired in plant on their own insurance.

It is paid for and I would quite like it to be used and earn its keep. It has sat idle for the last 6 weeks. I am expecting max £2k a year income, but at this rate, it could be under £1k this year.

My accountant has this side business on my tax return (sole trader) as a separate business from my main work (dispute resolution). Up until now this hasn’t been a problem. As a sole trader I have one VAT registration. But with MTD for Income Tax, I am required to file a separate Quarterly MTD return. This means extra software and a general complete pain in the bum.

It would be a shame to have to sell it. So, I’m thinking of widening the net and advertising it to local builders etc. But if I widen the net, I want to be able to sell insurance cover - a bit like CDW when you hire a van. I don’t want to be finding it going missing/damaged etc and not be covered/having to sue people etc.

I‘m not sure whose idea it was to make small sole traders go digital, but yet another software subscription and more fees to your accountant doesn’t exactly help pay the bills!

 

[JD450A]

CSO

 

[V8Druid]

CSO

my thoughts too ..... after writing off the m/c

 

[Steve Blackdog]

A bit dim here - CSO means?

 

[doobin]

Never mind the accounting- hiring a single old machine to local builders simply isnt worth the stress.

You will never be able to insure it properly either. Only way to do it is for them to purchase hired in plant separately- which they will never do.

 

[William127]

Never mind the accounting- hiring a single old machine to local builders simply isnt worth the stress.

You will never be able to insure it properly either. Only way to do it is for them to purchase hired in plant separately- which they will never do.

Fully agree. Mine are only available to about 4 people now, 1 of who is my Dad, 2 of them are builders who used to run a handful of machines for hire so know the score, and the last is a tree surgeon mate who has his own machines but very occasionally needs a micro. Even then I don't chase the hires.
As long as I'm happy they've paid their way over the year, I'm happy to keep them in the shed not clocking up the hours and not have to replace them for 15 years or more

 

[Steve Blackdog]

Fully agree. Mine are only available to about 4 people now, 1 of who is my Dad, 2 of them are builders who used to run a handful of machines for hire so know the score, and the last is a tree surgeon mate who has his own machines but very occasionally needs a micro. Even then I don't chase the hires.
As long as I'm happy they've paid their way over the year, I'm happy to keep them in the shed not clocking up the hours and not have to replace them for 15 years or more

I think this is the way to go - keep relying on my little group.

 

[Monkeybusiness]

Still don’t know what CSO means?

 

[hiluxman]

Still don’t know what CSO means?

Glad it's not just me too

 

[Furniss]

me neither

 

[V8Druid]

I read it as 'Cash sales only' -- hence my comments

 

[Steve Blackdog]

Chief Sustainability Officer? Combined Sewer Overflow?

 

[Steve Blackdog]

Cash only takes you so far. Someone gives you £200 in notes takes digger for a week, then heads off to the sunset!

 

[Lancs Lad]

Still don’t know what CSO means?

Might not be worth enquiring to deeply ..🫣

 

[V8Druid]

Cash only takes you so far. Someone gives you £200 in notes takes digger for a week, then heads off to the sunset!

you still need to be fussy with clientele, but bet there'd be plenty of takers who'd be acceptable to you