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Input VAT on Parking permit at business premises

Can I reclaim input VAT on a parking permit at the business premises

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A sole trader buys a private parking permit near his main place of business (office where admin for the business is carried out and therefore the base of operations). His car is used for business journeys from the business premises to clients and also private journeys. According to the VIT Manual travel to the place of work is a private journey, thus following income tax rules. VAT Notice 700/64 states that VAT on parking can be reclaimed under the "normal" rules (ie not the same rules as for repairs and maintenance which allow 100% deduction even if there is private use). Is it therefore correct that NO VAT can be reclaimed on the grounds that the journeys to the place of business are private? Or can a proportion of the VAT be reclaimed on the basis of the number of business journeys that may subsequently be taken from the business premises? Or can ALL of the VAT be reclaimed - some accountants seem to suggest that VAT on all parking at business premises can be reclaimed?

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By SXGuy
26th Aug 2020 15:21

I'm not a vat expert. But from what I can see you are perhaps mixing up two different things. Journeys to place of work, and parking at work.

I'd suggest the vat on the permit is a valid claim. But perhaps wait for others to comment.

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Psycho
By Wilson Philips
26th Aug 2020 16:25

My first question would be - are you sure there is VAT on the supply?

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Replying to Wilson Philips:
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By torry40
26th Aug 2020 16:31

Yes, there is definitely VAT on the supply - it is an annual charge and I have a copy of the VAT invoice

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Replying to torry40:
Psycho
By Wilson Philips
26th Aug 2020 18:59

In which case my follow-up question would be - are you satisfied that VAT has been correctly charged?

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Replying to Wilson Philips:
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By torry40
26th Aug 2020 20:55

Thanks for the input but I wasn't questioning the validity of the VAT invoice. It was issued by a (legal) organisation known to me and I have no reason to doubt it's validity otherwise I wouldn't be asking a technical question about reclaim. I'm not sure about other users of this forum, but I would only check a VAT number if there appeared to be something suspicious about the invoice or the supply. There simply aren't enough hours in the day to run a check on every VAT number.

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Replying to torry40:
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By tom123
26th Aug 2020 21:01

I have never checked a VAT number in my life. Fairly sure all my suppliers are reputable enough.

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Replying to torry40:
Psycho
By Wilson Philips
26th Aug 2020 21:12

I wasn’t suggesting that there was anything wrong with the VAT registration. But it is not unknown for suppliers to get the VAT treatment of parking wrong. Lawyers in particular often get confused by tax and VAT.

I was simply suggesting that if I were in your position I would just be making sure that I was happy that the VAT charge is correct. You are obviously already so satisfied so all is hunky dory.

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RLI
By lionofludesch
26th Aug 2020 16:35

I vote claim.

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