1 van 2 companys

1 van 2 companys

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Hi guys quick question

I own 2 company's 1 ltd which is vat registered (retail) an 1 sole trader not vat registered (electrical contractor)

We are looking to get a van too share either buy or lease but will be using for both company's, the van will be under the ltd company's name due to funds,

What's the best way to go around this both will be using I 50/50

Replies (3)

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By ccassociates
16th Feb 2012 16:30

VAN

If the Ltd Co owns the van then as the private use is not just incidental you would be subject to a full benefit in kind for private use of a Co vehicle which could wipe out the benefit of the VAT reclaim, also in reality if you have a dual purpose for the van on purchase you should not claim back the VAT. I suggest you buy the van in the sole trade and charge mileage at 45p per mile to the Ltd Co. and claim capital allowances in ratio to the useage. One word of caution, if you lease hire, make sure its a full lease hire and you NEVER own the van even if you only pay tuppence for it at the end of the lease, otherwise its lease purchase and you cant claim the full cost.

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Replying to cheekychappy:
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By Socomtactical
16th Feb 2012 17:54

Great thanks :-) shame are unable to buy through and claim the vat back then charge the sole trader 45p per mile

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Replying to Andp:
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By ringi
17th Feb 2012 12:55

Would you not have to charge VAT on the 45p per mile?

Socomtactical wrote:
Great thanks :-) shame are unable to buy through and claim the vat back then charge the sole trader 45p per mile

But you would you not have to charge VAT on the 45p per mile?

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