Reclaiming VAT on a T32 kombi .
- Thread starter carlg
- Start date
You can claim the full VAT back on your T32 as it is commercial vehicle over 1000kg, I have always claimed the full amount back without any issues as at times is has been my only transport.
The only issue i have had on one VAT inspection was that i should not claim the Vat back on the fuel i used when it was not for work purposes . Try and work that one out, i just carried on as i have for 20 + years with no problems.
The only issue i have had on one VAT inspection was that i should not claim the Vat back on the fuel i used when it was not for work purposes . Try and work that one out, i just carried on as i have for 20 + years with no problems.
Same here, claimed the lot straight away as listed solely for business use, i also have a private car that helps to back that up.
If claiming the vehicle VAT makes your next VAT return a large refund they sometimes send you a letter asking what/why and you reply to tell them you bought a vehicle
If claiming the vehicle VAT makes your next VAT return a large refund they sometimes send you a letter asking what/why and you reply to tell them you bought a vehicle
Matt Conway
New Member
As I understand it, there are variations depending on whether you are a sole trader or working through a limited company. And all this is assuming that your vehicle qualifies as a commercial vehicle:
Sole trader can claim back a proportion of the VAT, just like you can reduce your income by a proportion of the the cost of the vehicle. The proportion relates directly to the estimated split between business and personal miles, and you should have some evidence - like a mileage log - of how you came to that percentage.
For limited companies, it is a lot more "all or nothing". I run a limited company, and am the only director and only employee. About 15% of my mileage is personal, and this is too much to pass off as "incidental". I have the option of treating a new vehicle as a benefit in kind, and paying a fixed annual amount to the revenue in order to claim back 100% of the expenses, including VAT. Information here: Van benefits
I also have the option of claiming nothing immediately, and charging the standard 45ppm (up to 10,000 annual business miles) to the company, tax free.
Which option is best for you depends on various factors. As my annual mileage is fairly low and I hope to keep the van for a reasonable amount of time and sell it for a decent percentage of its purchase price, it is actually better for me to go down the mileage route. More pain now but it'll work out best in the end. A big consideration is how well these vans hold their value, as the sale of any company van has to go through the books as profit.
Sole trader can claim back a proportion of the VAT, just like you can reduce your income by a proportion of the the cost of the vehicle. The proportion relates directly to the estimated split between business and personal miles, and you should have some evidence - like a mileage log - of how you came to that percentage.
For limited companies, it is a lot more "all or nothing". I run a limited company, and am the only director and only employee. About 15% of my mileage is personal, and this is too much to pass off as "incidental". I have the option of treating a new vehicle as a benefit in kind, and paying a fixed annual amount to the revenue in order to claim back 100% of the expenses, including VAT. Information here: Van benefits
I also have the option of claiming nothing immediately, and charging the standard 45ppm (up to 10,000 annual business miles) to the company, tax free.
Which option is best for you depends on various factors. As my annual mileage is fairly low and I hope to keep the van for a reasonable amount of time and sell it for a decent percentage of its purchase price, it is actually better for me to go down the mileage route. More pain now but it'll work out best in the end. A big consideration is how well these vans hold their value, as the sale of any company van has to go through the books as profit.
Just claimed the vat back on my van. Instead of paying the usual £2500 wisely to the VAT man I got paid £4500.
Yay. More money for car parts.
I have never been asked about fuel usage from VAT or accountant. I just claim the full amount.
Yay. More money for car parts.
I have never been asked about fuel usage from VAT or accountant. I just claim the full amount.
How long (ballpark) do they take to refund you after you submit your return? @Pauly @StudleyGlass @RattyMcClelland Did mine last week...
I can Check in the office tomorrow but my vat quarter was up the end of november. I no i had the cheque on the 22 december about a week after i submitted my return online
After submitting the return it's 7 days for me.
Matt Conway
New Member
That's correct. Charge mileage and claim nothing now, ie nothing against initial purchase cost if vehicle, including VAT element.
Nellydevine
Member
How does this work if I got van on finance ?
Was surprised how fast they paid me the vat back too!
Same difference, mines got finance on it still and just claimed the lot back
Yep. Hire purchase, the deposit for the vehicle you pay is the full vat amount. I claim the full vat amount back straight away.
However the monthly installments you claim no vat at all or anytime there after.
However the monthly installments you claim no vat at all or anytime there after.
DrewParkes
New Member
Good evening,
Apologies for jumping into this conversation. I am looking to purchase a T32 and work as a 1 man LTD company. When you say commercial vehicle over 1000Kgs, do you mean total weight over 1000kgs, or 1000kgs payload. Unfortunately the model I am looking at has a payload of 978
.Many thanks for your assistance.
Drew
