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Taxi Company

Taxi Company

Client has a taxi company which is VAT registered

Part of the company rents taxi's to drivers - which obviously attracts VAT.   As the drivers are not VAT registered this makes the rentals very expensive, or the company loses money on each car

Would it be an option to set up a separate company that owns the cars and rents them to the drivers, who then do work for the other company

I'm just trying to find a solution to help the company out as at the moment it's a bit catch 22


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22nd Aug 2011 14:07

A separate company can do the rentals ....

but how will it reclaim VAT on the car purchases if it is not VAT registered itself? I work with a couple of these companies and I have not seen a way around the problem you have encountered. Obviously the drivers can register but if they are doing general cash work for Joe public then they will be reluctant.

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By occca
22nd Aug 2011 14:08

Thank you

Thanks for your reply, nice to know I'm not being completely dim !

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