Surely it all depends on what RFL if falls into?
If it's taxed on the flat rate commercial band, therefore also subject to lower speed limits, then it's a commercial. If it's a Caravelle or Shuttle and RFL rated on emissions, then it's a car.
Being a sole trader, I claimed a full amount of VAT back straight away on my previous Amarok, then put pro-rata expenses against profits to reduce my tax liability. Other than claiming the VAT back, it was not different to the previous cars I'd had, or my current Velle. Just don't forget to factor in having to add the VAT to the sale price when you come to change, therefore being liable for it. You only save the VAT on the depreciation.
If it's taxed on the flat rate commercial band, therefore also subject to lower speed limits, then it's a commercial. If it's a Caravelle or Shuttle and RFL rated on emissions, then it's a car.
Being a sole trader, I claimed a full amount of VAT back straight away on my previous Amarok, then put pro-rata expenses against profits to reduce my tax liability. Other than claiming the VAT back, it was not different to the previous cars I'd had, or my current Velle. Just don't forget to factor in having to add the VAT to the sale price when you come to change, therefore being liable for it. You only save the VAT on the depreciation.
BIK doesn't affect sole traders. You'll be taxed differently. It's an issue for employee's or people on their own LTD company payroll.
Dundrummin
Member
Interesting that this should pop up as I had this issue recently as a sole trader (not BIK but just tax capital allowance etc) and nobody seemed to have a clue so I ended up phoning HMRC to try and get a definitive answer....that was a laugh as you can imagine!
As far as I could work out a T32 Kombi with a payload over 1 tonne would be classed as a commercial vehicle so here goes.....
So, the first chap I spoke to I think was maybe one of the cleaners who they’d let loose on the phones for the day, I then finally got to speak to one of the inspectors and their answer was basically ‘it’s down to individual interpretation’ and 'they can’t give advice on individual circumstances' (so no chance of anything in writing). He did say however that a lot of the confusion comes from the way the VAT dept. treat this which is different than the way they do (the revenue dept)
Anyway, he did say that there are no specifics in their guidelines on Kombi vans but they have a definition for double cab pickups, again open to interpretation.
Meanwhile while chatting to him I found exactly what he was saying on an accountants firm's website, that as far as I can tell covers my vehicle, a T32 Kombi.
i.e. has dedicated load area bigger than the passenger seating area and,
has a payload of over 1 tonne (after the extra seats have been added)
………the VW T32 ticks both those boxes
So, bottom line was ‘do what you like and if we decide to investigate it will be down to the individual inspectors assessment’.
Great help, not.
For tax purposes we are going to treat it as a commercial vehicle, so there!
VAT is probably another world of pain but I'm not VAT registered, so there!
As far as I could work out a T32 Kombi with a payload over 1 tonne would be classed as a commercial vehicle so here goes.....
So, the first chap I spoke to I think was maybe one of the cleaners who they’d let loose on the phones for the day, I then finally got to speak to one of the inspectors and their answer was basically ‘it’s down to individual interpretation’ and 'they can’t give advice on individual circumstances' (so no chance of anything in writing). He did say however that a lot of the confusion comes from the way the VAT dept. treat this which is different than the way they do (the revenue dept)
Anyway, he did say that there are no specifics in their guidelines on Kombi vans but they have a definition for double cab pickups, again open to interpretation.
Meanwhile while chatting to him I found exactly what he was saying on an accountants firm's website, that as far as I can tell covers my vehicle, a T32 Kombi.
i.e. has dedicated load area bigger than the passenger seating area and,
has a payload of over 1 tonne (after the extra seats have been added)
………the VW T32 ticks both those boxes
So, bottom line was ‘do what you like and if we decide to investigate it will be down to the individual inspectors assessment’.
Great help, not.
For tax purposes we are going to treat it as a commercial vehicle, so there!
VAT is probably another world of pain but I'm not VAT registered, so there!
Dundrummin
Member
That's how I interpret it
gonzoromirez
New Member
This has probably been covered a lot, but I'l after a definitive answer if possible.
Can a Kombi van be purchased by a limited company and classed as a commercial vehicle for reclaiming VAT and against corporation tax (when used for business use only)
I have scoured the internet and only find mixed opinions and the HRMC guidance seems to be outdated and vague. Even accountants telling me it's not clear and could be a risk if in future it is classed as a car and subject to benefit in kind tax (back dated) and repayable tax benefits.
Has anyone had any joy or had dealings with HMRC on this?
Thanks
Can a Kombi van be purchased by a limited company and classed as a commercial vehicle for reclaiming VAT and against corporation tax (when used for business use only)
I have scoured the internet and only find mixed opinions and the HRMC guidance seems to be outdated and vague. Even accountants telling me it's not clear and could be a risk if in future it is classed as a car and subject to benefit in kind tax (back dated) and repayable tax benefits.
Has anyone had any joy or had dealings with HMRC on this?
Thanks
As far as I’m aware the ‘vehicle classification’ N1, M1 etc stays with the vehicle until it is scrapped.
My Kombi was a N1 when registered in 2016 and remained an N1 after becoming a ‘motor caravan’. N1 being a Light Goods Vehicle under 3.5Te.
It will always be road taxed as a LGV.
Perhaps VW Customer Services can advise.
My Kombi was a N1 when registered in 2016 and remained an N1 after becoming a ‘motor caravan’. N1 being a Light Goods Vehicle under 3.5Te.
It will always be road taxed as a LGV.
Perhaps VW Customer Services can advise.
gonzoromirez
New Member
Thanks, I did hear that about the Payload being over 1 ton
Agree with above. My T32 Kombi is owned by our Ltd Co and we reclaim the VAT on everything inc fuel.
Our Edition Kombi is a t30, but has a GVWR of 3080kg, to make sure there is a 1 tonne payload. Which was accepted by the HMRC (in my companies case anyway). The 1 tonne payload is the important bit. Or they count it as a car, and tax you to hell....
My T32 4-Mo won't quite carry a ton, so it's not a commercial, watch out for that.
But it is a commercial (over 2040kg) for speed limits
But it is a commercial (over 2040kg) for speed limits
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BobbyDoughnut
Member
So I’m going to say something controversial. Why can’t we simplify the rules. If you claim the vat back it’s for commercial use. If you don’t it’s for personal use. Discuss and please don’t abuse me. Obviously we can’t make the rules up but wouldn’t it be simpler?
Because we live in a culture where it's acceptable to dodge paying as much tax as you can get away with. Got to keep the accountants in the manner to which they have become accustomed. This is of course tongue in cheek, though fairly accurate.....
Tomzo
Member
I can find nothing solid on this subject it’s all very flaky did you get a definitive answer in the end as I have the exact same question.
gonzoromirez
New Member
Yes I did. Definitive answer from my account was that a T32 kombi could be put through as commercial due to the payload and ability to carry more weight. Anything less than a T32 needs to be a panel van. Others may have had different advice but this is what I've been told.
I think you have that the wrong way round. Don't you mean if it is for commercial use, then you can claim the VAT back? Also I don't believe that any vehicle like this can be claimed as used 100% for business use. That would mean that you couldn't even pop to the supermarket at the weekend in it.
