Stupid questions probably, but a car used by a partner would be treated as schedule D and CA's be reduced for private use, and would not come under company car benefits regulations?
EDIT: Also, if the car is used exclusively for business purposes can you reclaim the VAT, and if it is used privately at all then the VAT must be repaid, regardless of whether the private use is paid for?
Replies (5)
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Sensible answer
Yes. The term "company car" is a misnomer. It's a car made available by reason of the employment. A member of an LLP isn't an employee, so their car isn't made available by reason of any employment.
VAT
Yes you're right about the VAT. It's difficult but not impossible to argue 100% business use by a partner, though. You'd need robust mileage records in case of challenge.
I missed your edit!
On the VAT point are you asking about the VAT on the purchase? Which as Neil has confirmed cannot be reclaimed unless it's exclusive business use.
Or are you talking about the running costs? In that case you can claim the VAT, but if you claim VAT on private fuel, you will need to account for output VAT on the fuel scale charge.
Thanks Steve and Neil
No, it is VAT on purchase of the car, my reading is if any private use you cannot claim the purchase VAT, and any private use would mean the VAT is repayable if previously claimed, regardless of whether the private use is paid for by the partner (to the partnership)?