I have a query concerning VAT Notice 700/64
Para 5.1 seems to suggest that if a vehicle is used for business purposes you can claim VAT on repairs as input tax as long as the business paid for the work. It states that it does not matter if the vehicle is used for private motoring or if you have chosen not to reclaim VAT on fuel.
There is no indication that any private restriction needs to be made to the VAT claim. Therefore it seems to follow that even if a vehicle is used only 50% of the time for the business, provided the business pays the repair costs, the whole of the VAT can be reclaimed.
Please can anyone clarify that this is indeed the case?
Presumably however there is no way by extension that the whole of the net cost can be reclaimed as an expenses in the accounts? Surely this cost must still be restricted to reflect only the business proportion?
Many thanks for any help