Company Car expenses

[TheFaQQer]

Yeah I get that, but do you have a link to that anywhere? I can't find anything anywhere that says its not an allowable expense for certain trades.

Or are we relying on the more general "wholly and exclusively".

I thought you had a company 4x4?

[BolshieBastard]

Yeah I get that, but do you have a link to that anywhere? I can't find anything anywhere that says its not an allowable expense for certain trades.

Or are we relying on the more general "wholly and exclusively".

This appeared in a VAT bulletin a few years back when they announced the closure of the loophole. I didnt get it from their website.

The point is, you buy a half cab 4x4 and put your trade down as IT consultant when you attempt to reclaim the VAT element on it. Then, come back and tell us all what HMRC said to you. It will be something like '**** off!'

[Podgy]

I claimed the VAT for company car?

I claimed the vat back for a car purchase by the company on the basis I dont use it for private use?

Generally you can't reclaim the VAT when you buy, import, or in some other way acquire a car. But there are some exceptions to this. You can reclaim all of the VAT if you meet one of these conditions:

•The car will be used exclusively for business purposes and you can show that it's not available for private use by your employees or anyone else. For example, your employees' contract of employment excludes private use including travel from home to the place of work.

[Nixon Williams]

I claimed the vat back for a car purchase by the company on the basis I dont use it for private use?

Generally you can't reclaim the VAT when you buy, import, or in some other way acquire a car. But there are some exceptions to this. You can reclaim all of the VAT if you meet one of these conditions:

•The car will be used exclusively for business purposes and you can show that it's not available for private use by your employees or anyone else. For example, your employees' contract of employment excludes private use including travel from home to the place of work.

You would be hard pressed to convince HMRC that the car is in fact a 'pool car' - it will be the company's only car etc. I would advise against getting a company car if part of the calculation assumes that you can reclaim the VAT.

Generally, VAT may only be reclaimed on a car if it a pool car etc.

Alan

[Nixon Williams]

This appeared in a VAT bulletin a few years back when they announced the closure of the loophole. I didnt get it from their website.

The point is, you buy a half cab 4x4 and put your trade down as IT consultant when you attempt to reclaim the VAT element on it. Then, come back and tell us all what HMRC said to you. It will be something like '**** off!'

This would be news to me, whether you can reclaim VAT on a pickup truck depends on the payload capacity.

To be classed as a van it must have a capacity of 1000kg, if you have a hood added over the back, then this is deemed to weigh 45kg, therefore the payload would need to be at least 1045kg in order to still qualify as a van.

The VAT would simply be reclaimed on the VAT return.

Alan

[Sockpuppet]

I thought you had a company 4x4?

I do Land Rover Defender Utility Wagon. VAT qualifying as it can carry 1000kg payload. Also has 5 seats.

This appeared in a VAT bulletin a few years back when they announced the closure of the loophole. I didnt get it from their website.

The point is, you buy a half cab 4x4 and put your trade down as IT consultant when you attempt to reclaim the VAT element on it. Then, come back and tell us all what HMRC said to you. It will be something like '**** off!'

Well not an IT contractor. Officially I'm "Transport and Logistics Activity" or some such like, well I do work in a warehouse.....with computers.

This would be news to me, whether you can reclaim VAT on a pickup truck depends on the payload capacity.

To be classed as a van it must have a capacity of 1000kg, if you have a hood added over the back, then this is deemed to weigh 45kg, therefore the payload would need to be at least 1045kg in order to still qualify as a van.

The VAT would simply be reclaimed on the VAT return.

What I was told by my accountant. Ironically it also helps me pass another question on the new business entity tests as I have tangible assets of >5% of turnover.

[SueEllen]

How many emails do you send to her ?

I was wondering that as accountants are normally happy to answer a few questions including confirming things you have read yourself on the HMRC site.

[BolshieBastard]

Dont forget if you are driving a vehicle such as a 4x4 half cab \ crew cab type vehicle, these are classed as light commercial vehicles and different speed limits on roads apply. So, although you may think you're within the speed limit for PLG's, you may actually be collecting tickets and points!

[lithium147]

I was wondering that as accountants are normally happy to answer a few questions including confirming things you have read yourself on the HMRC site.

Well actually, I am quite happy with my accountant. I think made it sound worse than it was. Charges by the hour, which has proved to be much cheaper than the standard monthly rates I hear about.

[lithium147]

company car insurance

Still not sure about whether its possible to put company car insurance through company as an expense, and not have it treated as a benefit in kind.
Health insurance is treated as a BIK, so maybe car insurance would be too.

This would be the deciding factor in whether buying a car through my company was worthwhile..