Contract Hie, VAT and Directors Contributions

Contract Hie, VAT and Directors Contributions

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My understanding is :
A Company can reclaim 50% of VAT on contract hire
A Director reduces his/her BIK position by making a contribution to the Company

If a Director repays 100% of the cost to the Company ( After the Company has reclaimed its 50% VAT)- does that remove the BIK on the Dir ( And the Class 1A on Co.)?

Would the Director then be able to charge the Company Revenue mileage rates?

You will deduce this is to do with the VAT position as much as the BIK position.

Is there any relevance if the vehicle concerned is one of these double cab pick ups ??

Thanks for any advice!
Michael Page

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