Am I correct that Ltd Co is allowed to reclaim all VAT on purchase of 8 seater Ford Transit passenger van (playload less then 1 ton) if it is not available for private use?
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I think you can claim input VAT on any car that's not available for private use, and also actually has zero private use.
Never seen in happen in practice though, and I dare bet you'd need impeccable records should it be subject to an enquiry.
If the car is to be used as a taxi, then yes you can. But you will need to evidence the taxi use, such as taxi licence.
If it is for business use, then the 'Upton' case applies, such that the vehicle had to be unavailable for private use.
Just be careful on this. For all input recovery is allowed for exclusive business use - I would expect that HMRC would challenge this point vehemently.
The situation is a lot worse with all cars being kept at the directors home.
Personally I'd be extremely reluctant to claim VAT on these, or at least I'd be telling the client to expect to have to pay it back.
The problem isn't (as much) the drivers having the availability or private use in this case - it's the director, and you'd have to prove that it wasn't available for him.
Proving that the cars aren't available for him might be very difficult, especially given the fact that the client uses them for airport runs himself, then returns them to his home/work.
You'd also likely need to account for every mile done in the cars to prove there have been no private journeys. It might be hard getting the drivers to do this.
I'll hold my hands up though - I haven't actually dealt with a case like this before so there may be someone in a better position to comment, but that's my take on it.
Off topic slightly, but I'm surprised they didn't go for 10 seaters instead of 8 seaters.
Because then you need drivers with PSV licences if you intend to use them for hire or reward.
Well are we not just all getting our collective complete b*llocks in a twist here.
If it can be evidenced that, at the time of acquisition, the car was intended to be used predominantly as a taxi, you can recover the input VAT (all of it) - end of - irrespective of whether there will be or is any private use; if there is subsequently any private use there is an output VAT charge, under the private use of assets provisions.
TheLamptonWorm appears to be confusing the direct tax provisions with the VAT provisions. For direct tax purposes it should be possible to avoid benefits in kind though, subject to the precise actual circumstances.
The three bullets in paragraph 3.1 of VAT Notice 700/64 are "or"s rather than "and"s: https://www.gov.uk/government/publications/vat-notice-70064-motoring-exp...
I was aware of the different provisions, but didn't know, or more likely forgotten about the little (and very important) bit regarding taxis.
Apologies for the nonsense, and I'm glad you pointed it out before my rotten advice was taken.
Keep scrolling and you'll eventually see.
Maybe i'm getting my websites confused too though.
PLN asked what is a playload, not what is the playload?
I don't think it's an eggcorn or mondegreen; I'll plump for a malapropism.
Just as a point of advice that you can rely on free rider...
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