In order to claim the Vat back on a purchase of a new car, the owners of a company decided to get it invoiced under the business but it will generally be used for Social, Domestic and Pleasure
When it comes to registering the car, do they have to register it under the companies name or can they put it under their own name
They do not have Fleet insurance and only have 1 vehicle in the business
Unless the car is being used 100% for business use (and the insurance backs this up by not having social domestic and pleasure use) then VAT isn't reclaimable I'm afraid.
If you wish to include the car in the company accounts and write it down under write down allowances then it should be in the Company name.
-- Edited by Leger on Thursday 3rd of March 2016 09:56:46 AM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
`Unless the car is being used 100% for business use (and the insurance backs this up by not having social domestic and pleasure use)`.
Not sure that is correct, I recently had an issue relating to a `pool` car - the accountant wanted to see the insurance docs, saying that it had to state 100% business use, but the docs stated `social domestic and pleasure and business purposes`.
After speaking to an insurance broker I was advised that no insurance would be 100% business use.
I have possibly misinterpreted the rules but my understanding is that the car mustn't be available for private use.
Looks like that accountant agreed with me but if the insurance can't be assigned as 100% business use I don't see how it can be applied.
A quick check on the gov site states that it should be written into an employee's contract that the car can't be used privately, but in the case of a Director what do you do?
Interesting and I appreciate your input.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
