Hi all,
I'm considering buying a commercial vehicle (Ford Ranger) and claiming the VAT back.
My question is more based on whether I'm allowed to do this early in the business life? This is a new business and I've not had any revenue as yet so wonder if I can just claim back such a large amount of money before I start to get some money coming in?
Thanks in advance for any help.
Nick
Replies (7)
Please login or register to join the discussion.
Are you VAT registered? If not you can't recover any VAT.
If your business has not earned any revenue, how is going to afford to buy a costly vehicle?
Check with your accountant that the Ford Ranger you are buying isn't classified as a car for VAT purposes.
You can only recover input tax on 'commercial vehicles' (as defined by HMRC).
I don't have the rules or a current list of qualifying vehicles to hand. In general terms, the Ford Ranger models with a single row of seats probably do qualify as commercial vehicles; those with two rows of seats may not.
More generally, do you actually need a gas-guzzler like this? You didn't mention your trade/business. An ordinary car would almost certainly be better for the environment and probably cheaper to buy.
Not having had any revenue isn't a barrier to reclaiming the VAT. What you should discuss with your accountant is whether there may be any other barriers.