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Vat on new vehicle bought through the company

A client has purchased a new vehicle through the company, can he claim all the vat back?

Didn't find your answer?

A client has bought a rather expensive vehicle through the company and submitted a vat invoice for it. At first I thought he could claim all the vat but now doubting that. As I believe it is mainly for personal use can he claim the vat back at all? Or a portion of it? 

 

Replies (27)

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By Tax Dragon
07th May 2021 14:50

How many wheels does it have?

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Replying to Tax Dragon:
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By VATs-enough
07th May 2021 21:02

Maybe none....

Yacht ? Helicopter ? Would a submarine count ?

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Replying to VATs-enough:
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By Paul Crowley
07th May 2021 22:23

Hoverboard

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Replying to Paul Crowley:
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By Tax Dragon
07th May 2021 22:26

Quote:

Hoverboard

Now that's what I call a special purpose vehicle.

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By paul.benny
07th May 2021 15:06

Have you tried consulting the VAT guide (VAT700)? Hint: see para 10.3

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RLI
By lionofludesch
07th May 2021 15:31

Vehicle ?

What sort of vehicle ?

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Routemaster image
By tom123
07th May 2021 15:35

Voting no.

even without further info.

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Replying to tom123:
RLI
By lionofludesch
07th May 2021 15:45

Quote:

Voting no.

even without further info.

Mainly for private use ?

I confess I'm thinking "car".

Thanks (1)
Replying to lionofludesch:
Routemaster image
By tom123
07th May 2021 15:53

Or maybe fully pimp my ride style double cab pickup etc.

Unlikely to be Vauxhall Vivaro in any event..

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Replying to tom123:
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By Paul Crowley
07th May 2021 22:24

I agree
All or nothing

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By Paul Crowley
07th May 2021 16:24

Vehicle means nothing
IS IT A VAN?
Who bought it?
Did the company buy it?
Is the 'company' a limited liability company?
What is the trade of the company?

Assumed VAT is on the vehicle, not the lease payments for the vehicle

Thanks (2)
Replying to Paul Crowley:
A Putey FACA
By Arthur Putey
07th May 2021 16:27

.... and the wheels on the bus went round and round ...

Thanks (1)
A Putey FACA
By Arthur Putey
07th May 2021 16:26

No, simply because "he" is unlikely to be a "taxable person" under Section 3(1) of the VAT Act 1994
(as its Friday I even threw in a citation)

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By Tax Dragon
07th May 2021 16:28

I'll try a different approach.

How many seats does it have?

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Replying to Tax Dragon:
A Putey FACA
By Arthur Putey
07th May 2021 16:50

Higher than 1?

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Replying to Tax Dragon:
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By tom123
07th May 2021 19:12

53 if it is Arthur's bus.

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Replying to tom123:
RLI
By lionofludesch
07th May 2021 20:32

Quote:

53 if it is Arthur's bus.

Oh - you know Arthur ?

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Replying to lionofludesch:
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By Tax Dragon
07th May 2021 22:28

Maybe not, but I'd say Tom knows his buses better than most of us in here.

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Replying to Tax Dragon:
Routemaster image
By tom123
08th May 2021 08:06

Can you tell :)

I have a provisional licence for them too.

Might do the test for my 50th this year

Thanks (0)
Replying to tom123:
A Putey FACA
By Arthur Putey
08th May 2021 09:31

I like buses, and hope that classic bus rallies will resume. I'm more of a fan of the 26 seat Bedford OB but also have a soft spot for the Bristol Lodekka which I went to school on.

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Replying to Arthur Putey:
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By Paul Crowley
10th May 2021 09:33

Guy Arab Utility
Used to take the schools to the the swimming baths as well as being the usual bus used by the town corporation

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Replying to Arthur Putey:
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By Tax Dragon
10th May 2021 11:50

Something you and Tom might both enjoy

https://youtu.be/Qh1_l462u7U

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Jason Croke
By Jason Croke
07th May 2021 16:43

Input tax on cars is specifically blocked in UK law.

There is no proportional recovery allowed.

There are certain means and ways to reclaim VAT on cars but it is nuanced and entirely "driven" by the precise and specific situation of the business reclaiming the VAT.

If the vehicle is not a car but another type of vehicle or a car that is also defined as a commercial vehicle then the answer may be different.

Thanks (1)
chips_at_mattersey
By Les Howard
07th May 2021 16:53

if you have to ask that question then the answer is 'no'!

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By I'msorryIhaven'taclue
07th May 2021 22:51

Might it make a difference to your answer(s) if the protagonist client, or more appropriately his company, "bought" the (let's suppose) car via a lease agreement?

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Replying to I'msorryIhaven'taclue:
A Putey FACA
By Arthur Putey
08th May 2021 09:33

..... but then the scope of the discussion would creep into the effect of CO emissions on corporation tax relief.

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By Calculatorboy
08th May 2021 06:48

don't tell us you are in practice?

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