Is yours a kombi Mark?
The payload refers only to a Kombi, btw. If you’re going panel van then it’s 100% LCV no question and the payload can be as low as you like
Your very right!
In the end if I can remember...
Kombi wise I could not get a 4motion 204 with a 1 tonne pay load so would have had to go 150.
Panel van wise I could not get a 4 motion 204 in a T30
So went panel van T32 204ps 4motion
Sorry to drag this up again! From my understanding the guidelines from the VAT man are to assertain wether you’re actually using this vehicle for work or not. Suppose like me you actually need a Kombi to get crew to location and you actually need a 4Motion because you’re often driving off of tarmac will the fact your payload is slightly less than 1000kg mean you couldn’t possibly be using it as you’re work transport? Or will the computer say no and you have to pay the VAT despite it being a bonifide company vehicle and not someone making use of the Kombi loophole?
As I understand it, and I'm no expert by a long way: HMRC have a different court ruling for a Vauxhall Vivaro Kombi compared to a VW Transporter Kombi. (Coca-Cola Ruling)
The judge looked at the two vehicles and said well, the Vauxhall was defiantly a commercial; and the VW was more car like. A very subject view, but there you go. I'm not sure if the ruling related to VAT reclaim/BIK/Off-set from corp tax.........etc etc, they are all different things. Not sure if Coke have accepted this ruling, or are appealing it in a higher court!
So if according to HMRC the VW T kombi is a car ; you could consider treating it as a pool car; but that means absolutely zero personal use; it goes back to the business address at night; it's insured for all possible users; you have multiple users; you have a business need for it; you don't have accessories on it, that don't 100% relate to business use, full 100% milage records...... etc etc
The 1000kg is not relevant to kombi's just Double cab pick ups.
I'm not sure what sort of spec Coke had on their VW's; leather seats etc etc.
Be interested to hear what others think/understand
The judge looked at the two vehicles and said well, the Vauxhall was defiantly a commercial; and the VW was more car like. A very subject view, but there you go. I'm not sure if the ruling related to VAT reclaim/BIK/Off-set from corp tax.........etc etc, they are all different things. Not sure if Coke have accepted this ruling, or are appealing it in a higher court!
So if according to HMRC the VW T kombi is a car ; you could consider treating it as a pool car; but that means absolutely zero personal use; it goes back to the business address at night; it's insured for all possible users; you have multiple users; you have a business need for it; you don't have accessories on it, that don't 100% relate to business use, full 100% milage records...... etc etc
The 1000kg is not relevant to kombi's just Double cab pick ups.
I'm not sure what sort of spec Coke had on their VW's; leather seats etc etc.
Be interested to hear what others think/understand
I’ve emailed my accountant to ask him, this situation is a bit of a pi$$ take. I’ve specced my van to make it as suitable as possible for the work I do. I choose a VW over a Vauxhall for lots of reasons but reliability and a good discount being the main two (both good for business) hard to believe a judge thinking one “looks more like a van” could be the deciding factor here! I’ll let you know what the bean counter says when I get a reply.
I have a 204 kombi dsg T32 ,when I bought it I put my claim in for the vat back . As it was my first vat return they phoned me up to ask why I was claiming so much back .I told the lady I had bought a new van ,she asked what I had bought ,I told her it was a vw transporter .she asked me to send in my van invoice and my vat workings .They paid me the vat a week later .
But now I am thinking about a 4 motion kombi and wondering if they will give the vat back .
But now I am thinking about a 4 motion kombi and wondering if they will give the vat back .
I’m currently waiting for delivery of my 204 Kombi T32 DSG 4Motion......
According to what I’ve read the fact it’s payload isn’t 1000kg isn’t the issue. It’s the fact that “if it has windows behind the driver it is unlikely to be classed as a van” so this pretty much makes any VW Kombi not eligible to reclaim the VAT. However on the HMRC website it uses the words “unlikely” which leaves room for interpretation. I actually need seats in the back for crew,I also need a 4MOTION as I drive off roads to locations. The fact it has windows is a safety and well being issue. I am fully intending to claim the VAT back on my van as it is bought for the use of my business. My accountant agrees with me but has forwarded it on to his VAT consultant to make sure the t’s are crossed and i’s are dotted. I’ll let you know what they say as soon as I get a reply. But like I said before if you can’t prove you actually need the vehicle you’ve bought I think you’ll have a hard time convincing the revenue that it’s for business. On a side note apparently there are people in the film industry that have claimed the VAT on California’s as they need to “stay on location”
I'm sure people like Titan Travel Tours that run 100 or so Vels can legitimately claim the vat back; Taxi?; Minicab?; VIP Travel? Private Hire? Car Hire?
Regarding Californias, we have reclaimed VAT on a Autotrail MH twice; we use it to do dog agility competitions across the UK; but my wife has a Natural Animal Health company which is totally related.
I guess some of their reasoning must relate to personal use v commercial use!
So hopefully I should be ok as I have a legitimate reason for ownership. I can’t face reading anymore HMRC guidelines.
I've followed this thread all the way through, with some detachment as I don't need to do this sort of thing any more. However although through my job I have a lot of involvement with HMRC at the moment and can see that some of things presented as fact in this thread are completely wrong, I'm not going to add to the confusion by adding my twopenn'orth on the rights and wrongs. What I would say is, if this affects your business do yourself a huge favour and ignore everything you read on this thread and speak to an accountant about your individual situation. And make it one that has experience in this field, as some of the stuff that some have said their accountant had told them is frankly scary. I'll get back under my rock now.
Hi Andy’s. I’m sure everyone is assuming the accountant they’re using has experience in this field, or they wouldn’t be asking for their advice. If you have any opinions on this I’d really appreciate it. As if my accountant is misleading me how will I know until it’s too late.
I'm not an accountant, but I have had involvement with quite a few and it's become clear that different ones have different specialities and some of the general ones try and do a bit of everything. Again, just my experience and opinion but I've found you get what you pay for and the big, expensive accountancy firms will know all the tricks. fight your corner, and in some instances personally know their "adversary" (because they used to work together and changed sides), far better than the genuine, well-meaning one man band. So it's not a popular thing to say but the more you pay, the better the final result will 'probably' be.
Above all, use an accountants with multiple partners as your work will find its way to the person best able to deal with it. I've seen people who've stuck with an accountant because he's a friend of the family etc and regretted it on several occasions now.
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