Claiming VAT on vehicle repairs - proportional to business use

[vwdan]

Recent case on that subject here The Finance & Tax Tribunal The "pool car" in question was a Porsche 911

This brings back memories of my time working for Audi where, as a junior, I was assiting with the audit and found that there were six 'pool cars' missing from the premises! Somehow ended up in the driveways of senior managers & sale staff!

Haha, the annoying thing from my perspective is that I know I'll probably be struggling to keep my ahead above water at all for the next [x] months, when you have others making an absolute mockery of the rules and encouraging HMRC to try and tighten the legislation.

My car in question is a 10 year old Mondeo with a million miles on the clock

I'd go for a classic, but I presume it wouldn't really help? (There's no way I can afford/justify a new vehicle, low emission or otherwise)

[Clare@InTouch]

Haha, the annoying thing from my perspective is that I know I'll probably be struggling to keep my ahead above water at all for the next [x] months, when you have others making an absolute mockery of the rules and encouraging HMRC to try and tighten the legislation.

My car in question is a 10 year old Mondeo with a million miles on the clock

Then unlikely to be worthwhile as the BIK is based on list price when new, not market value (unless it's a Classic, then it's Market Value - they get you both ways!). You'll probably be better off claiming mileage instead.

Or buy a van, the BIK on those is quite low in comparison and you can add on private fuel for not much more!

[Clare@InTouch]

This brings back memories of my time working for Audi where, as a junior, I was assiting with the audit and found that there were six 'pool cars' missing from the premises! Somehow ended up in the driveways of senior managers & sale staff!

Pool cars have a habit of doing that in my experience, unless they happen to basic model Polos or similar

[northernladuk]

Recent case on that subject here The Finance & Tax Tribunal The "pool car" in question was a Porsche 911

Loving this paragraph..

Appellant at first replied that he wanted a Porsche and that is why they had got one,
but later retracted this and said that it was the company that had wanted the vehicle.
The Appellant also said that the company did not have a logbook of journeys but that
these could be quite easily made up. He later retracted this statement and said that he
would not be making up the records in terms of a fabrication, but would be putting
30 them together. The Appellant confirmed that the insurance papers for the Porsche
were in his own name.

Talk about shooting yourself in the foot.

[vwdan]

Then unlikely to be worthwhile as the BIK is based on list price when new

Yep, most annoying!

Or buy a van, the BIK on those is quite low in comparison and you can add on private fuel for not much more!

A builder friend recommended going this route (Or a 4x4 commercial vehicle) but ignoring the outlay for a new vehicle, this feels like something that is skirting the edges?

From my own personal perspective, buying an older car works so much better for me because I'm pretty handy with a spanner but it seems to save nothing in terms of tax.

[vwdan]

Talk about shooting yourself in the foot.

I've closed the document now, but there's a great bit in where he claims to have sold the car to an "unknown company" before eventually admitting he purchased it himself and turned a profit.

[Clare@InTouch]

A builder friend recommended going this route (Or a 4x4 commercial vehicle) but ignoring the outlay for a new vehicle, this feels like something that is skirting the edges?

From my own personal perspective, buying an older car works so much better for me because I'm pretty handy with a spanner but it seems to save nothing in terms of tax.

There's nothing wrong with buying a van, it's not doing anything other than complying with current tax law - it's no different than being able to pay yourself dividends and thus benefit from lower tax rates.

And, because it's a commercial vehicle, you can reclaim the VAT and claim 100% capital allowances.

[vwdan]

There's nothing wrong with buying a van, it's not doing anything other than complying with current tax law - it's no different than being able to pay yourself dividends and thus benefit from lower tax rates.

And, because it's a commercial vehicle, you can reclaim the VAT.

Thanks Clare - like I say, I'd heard it as a theory but somehow assumed that someone would ask me WHY I had a van one day. It could definitely be a reasonable way forward, then.

[Martin at NixonWilliams]

A builder friend recommended going this route (Or a 4x4 commercial vehicle) but ignoring the outlay for a new vehicle, this feels like something that is skirting the edges?

Not at all, just make sure you meet the definition of a Van for tax purposes - The savings compared with that of a car are huge.

[northernladuk]

Not at all, just make sure you meet the definition of a Van for tax purposes - The savings compared with that of a car are huge.

But wouldn't it fail because an IT contract cannot justify having a van?

http://forums.contractoruk.com/accou...4-mo-rule.html

Do you mean huge as in tax wise against a company car but still questionable against privately owned car using the 45p per mile system?