VAT registered vehicle

Claiming VAT back

Didn't find your answer?

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)

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By paul.benny
09th Feb 2020 16:59

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?

Thanks (1)
Replying to paul.benny:
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By Nickbeachy23
09th Feb 2020 17:05

Yes VAT registered.

I'm a sole trader and it's coming from savings.

Thanks (0)
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By Wanderer
09th Feb 2020 17:12

Check with your accountant that the Ford Ranger you are buying isn't classified as a car for VAT purposes.

Thanks (1)
ALISK
By atleastisoundknowledgable...
09th Feb 2020 17:33

What did your accountant say?

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By Nickbeachy23
09th Feb 2020 18:54

Hi again.

Thank you so much for the replies. In terms of the original question I don't suppose anyone knows the answer do they?

Thanks.

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Replying to Nickbeachy23:
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By paul.benny
10th Feb 2020 07:50

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.

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RLI
By lionofludesch
10th Feb 2020 06:52

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.

Thanks (1)