VAT reclaim on a PCP commercial vehicle purchase

What VAT can I reclaim if I offset the VAT on the initial deposit?

Didn't find your answer?

I'm buying or looking to buy a commercial vehicle through a PCP finance agreement, under the flat rate scheme I cannot reclaim on purchases under £2000 right, does that mean I can't reclaim on each individual payment towards the PCP agreement? 
So I would be looking to pay all the VAT on the initial deposit and therefore have the finance agreement vat free, if I was to do so can I then claim that back?

I also read about PCP agreements allowing cars to then be used privately aswell as for business if bought under the company, does this also then apply to commercial vehicles or would it still have to be entirely and exclusively used for business purposes?

Thankyou in advance; completely stumped

Replies (3)

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By David Ex
16th Aug 2023 19:19

If you're stumped, probably time to ask your accountant.

Dr Google found this but I've no idea whether it's applicable to your particular circumstances.

https://www.gov.uk/government/publications/revenue-and-customs-brief-1-2...

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RLI
By lionofludesch
16th Aug 2023 23:38

Depends on the numbers but maybe PCP is not for you.

VAT flat rate and PCP are not really compatible. Maybe traditional HP would be better. Or a bank loan.

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By Sandnickel
17th Aug 2023 11:53

Try VATTOS9250, not sure if it applies to your specific circumstances or not but some finance can be treated as a continuous supply.

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