Kombi Van And Vat Is A Caravelle Conversion Ok

[Shaun Witts]

For some (buying through a limited company), there could be further implications beyond just the VAT such as Benefit In Kind (BIK) tax. For this, a Kombi is no longer a commercial vehicle. A panel van is, but if you then modify it and add windows behind the driver it becomes dual purpose and ceases to be a commercial vehicle. I have yet to find confirmation from HMRC that adding seats in the rear wouldn’t have the same result (my accountant has sent a letter asking this question).
Yes, plenty of vehicles that appear to meet the same criteria are never challenged and yes, there are plenty of people who have done the above to their Transporter and got away with it. So far.
It looks like the landscape is changing with recent tribunal findings. For more info, do a search for Coca Cola vs HMRC (I think there is also a thread about that in this forum somewhere), and read some of the summaries by various financial outfits.
Trouble is, both the dealers and conversion companies (that I have spoken to) are insistant that there is no tax penalty from buying a Kombi or fitting windows/seats to a panel van! But it is nigh on impossible to find a definitive statement on it.

 

[Lord Mfwic]

check the log book. I was worried regarding the VAT,we rang the tax office and they said as long as the log book has category N1(carriage of goods)it would be fine ,even though its a kombi. Category M1 is for carriage of people,Eg-vw shuttle,caravello,So technically you cant claim Vat,unless your going to be a taxi driver? The Revenue had a case against coca cola who where claiming that there vans, think they were vivaro combos where purely for carriage of goods even though they had seating behind the driver.they lost the case,The Revnue are now taking more interest in multi purpose vans.

I think a lot depends on the line of work you're in. If you run a web design company, for example, then you will struggle to justify the need for a Kombi van for work purposes but if (like me) you run a building company, then a multi purpose van that can be moving materials in the morning and turning up at a Blue chip client for a sales call in the afternoon, is a justified expenditure.
My accountants, who are very good and very expensive (you get what you pay for) have assured me that I am totally compliant in reclaiming the VAT.
It all depends on what line of business you're in.

 

[Scruffy]

Is the original Kombi in question excluded from reclaiming because it doesn’t meet the 1000kg payload? It sounds like it to me. Vat , I’m pretty in solely down to payload.

 

[andythom188]

Colin charges £350 to fit but this was last year.
Rails
swb second hand £700
Lwb £1000
Caravelle floor £300
Seats thats the expensive bit if your after single rear swivels I've got 2 for sale
Colin from t5 oxford or north west transporter parts can supply new rails and floors if need drop us a msg if you need there numbers.

Cheers
Andy

 

[Scruffy]

Is the original Kombi in question excluded from reclaiming because it doesn’t meet the 1000kg payload? It sounds like it to me. Vat , I’m pretty in solely down to payload.

Errors everywhere! Sorry, I must not post at midnight, after a few drinks.

 

[Apretext]

Is the original Kombi in question excluded from reclaiming because it doesn’t meet the 1000kg payload? It sounds like it to me. Vat , I’m pretty in solely down to payload.

It should be, certainly. Mine has a payload of 1052KG, was purchased by my business, is mainly used for business (obviously I'm paying BIK for private mileage, I do also have another car), etc, etc

One of my main customers has a Landrover discovery "van", which has bulkhead seats, and is much more a car than my van is, and that was fully accepted by the tax man.

I'll find out soon if the tax man is going to get funny about it, I shall be arguing it very thoroughly if he does...

 

[Shaun Witts]

I shall be arguing it very thoroughly if he does...

Well good luck with that. I am sure Coca Cola did the same!

Seriously though, it should only be a concern if HMRC decide to do an investigation into your affairs and if your accountant is fine with it then what more can you do?

 

[Apretext]

Well good luck with that. I am sure Coca Cola did the same!

Seriously though, it should only be a concern if HMRC decide to do an investigation into your affairs and if your accountant is fine with it then what more can you do?

I'm sure Coca Cola did, but then if they are anything like Amazon or any other big american company, they more than likely pay approximately 0% tax in the UK, and therefore the taxman wanted an opportunity to screw them.

As you say, unless they do an investigation (which given the size of my business, and the total lack of cash in hand transactions is hopefully unlikely) then all should be fine. Many people are driving around in considerably less "vanny" vans that the taxman doesn't have a problem with.

 

[Semisonic]

Just spoke to Vw salesman and he’s saying a T32 4 moition DSG Kombi complys with the 1000kg pay load ? Not sure he’s right he’s saying because it T32 it’s larger payload ? If he’s right I would order one tomorrow!!!!

 

[Apretext]

Just spoke to Vw salesman and he’s saying a T32 4 moition DSG Kombi complys with the 1000kg pay load ? Not sure he’s right he’s saying because it T32 it’s larger payload ? If he’s right I would order one tomorrow!!!!

The brochure I have would suggest it's 966kg, so no it doesn't. Is worth checking though

 

[Semisonic]

¯\_(ツ)_/¯ Painfully close !!! Lose the spare wheel

 

[Lord Mfwic]

Just spoke to Vw salesman and he’s saying a T32 4 moition DSG Kombi complys with the 1000kg pay load ? Not sure he’s right he’s saying because it T32 it’s larger payload ? If he’s right I would order one tomorrow!!!!

Mines a T32 and I'm 99.9% sure they comply to the 1000kg payload. My understand is a T32 can carry 3.2 tons including the weight of the van.
T28 = 2.8 tons etc etc.

 

[Apretext]

Basically yes, although my T30 has a gvw of 3080kg... go figure!

I think vw’s weights include a driver though, whereas revenue weights don’t, so you may be ok. However, that DEFINITELY needs checking before you sign on the dotted line

 

[Pauly]

Mines a T32 and I'm 99.9% sure they comply to the 1000kg payload. My understand is a T32 can carry 3.2 tons including the weight of the van.
T28 = 2.8 tons etc etc.

Normal T32 kombi is fine but when its a DSG & 4motion it eats into the payload and brings it just under the magic 1000kg

 

[Semisonic]

Look like it’s sorted full steam ahead with T32 4 motion dsg lwb as found a company that can get the payload up an extra 200kg taking over the 1000 kg just got to sort out the line out body kit etc

 

[carlg]

Look like it’s sorted full steam ahead with T32 4 motion dsg lwb as found a company that can get the payload up an extra 200kg taking over the 1000 kg just got to sort out the line out body kit etc

Who is the company and.what.do they do to get the payload up

 

[andys]

I can just see the thread coming soon, “What wheels/tyres for my T34?”

 

[Ads_Essex]

Who is the company and what do they do to get the payload up?

I imagine it may be SV Tech