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• Keep records of when used – this could simply be a paper diary of when and who used the horsebox;
• Ensure that records include estimated mileage and nature of use;
• Tell your accountant, book-keeper or tax adviser how that horsebox was used;
• If you have been using a horsebox for both business and personal use, consider telling HMRC before they approach you.  But be sure to take advice from your accountant beforehand; and
• Make sure that VAT is being correctly accounted for if there is mixed personal and business use.

Fiona adds: “HMRC is unlikely to punish honest mistakes – it will simply require you to repay the tax that should have been payable.  However, if you mislead HMRC and depending on whether there is deliberate concealment or not, they can impose a penalty of between 20% and 100% of the tax due.”