IT contractor and Van

IT contractor and Van

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I have also had a contractor ask me about buying a Van as he travels >10,000 miles and 25p per mile doesn't cut it.

He is under the flat rate scheme for VAT.    Can I double check that there is nothing to stop him reclaiming the input tax?  The Ltd Co will pay cash.

It seems to good to be true...

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By Portia Nina Levin
30th Mar 2016 12:10

Yes, you can generally reclaim VAT on vans that are used for business purposes, and you can reclaim such input VAT under the FRS where they are capital goods (check), costing more than £2,000 (check, presumably).

Obviously, to the extent that there is private use of a business asset, other than a car, there will be an output VAT charge each quarter, under Part 15A of the VAT Regulations, albeit at the flat-rate percentage on the deemed (VAT-inclusive) consideration.

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