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Post Info TOPIC: VAT on purchase/lease business Van
Lyndsey


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VAT on purchase/lease business Van
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Hi all

Just wondering I know you can't claim VAT back on cars, due to the likeliness of personal use, however, is this possible on commercial vans, either outright purchase or leasing? What if there is personal use ie driving to/from home?

 

Thanks Lyndsey



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Shamus


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Vans run to different rules to cars and are more akin to general plant. As such the VAT is reclaimable (adjusted for private use where such is not incidental).

Continueing the above theme a small amount of incidental use is allowable (See eim22745 here : www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22745).

You need to ensure that its really a van... Unfortunaately you cant search the site via Google at the min for the last time I posted a link to what vehicle are really vans (some will surprise you) so I need to go off and find HMRC's web page that has the list of what they consider vans as opposed to cars pretending to be vans for the better tax treatment.

Hang on a sec...

Oh, didn't take as long as I thought that it would . Here you go : www.gov.uk/government/uploads/system/uploads/attachment_data/file/428510/Car_derived_Van_updateMay2015.pdf

Hope that helps Lyndsey,

all the best,

Shaun.



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Lyndsey


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Thanks that is great Shaun,

I thought Vans were treated differently to cars, just couldn't find the confirmation.

No van has been purchased yet, so that is great help!

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Shamus


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No probs at all, glad to help. biggrin



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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