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AA Breakdown Cover and VAT

Discussion in 'Accounts & Finance' started by SabreEnergy, Aug 6, 2009.

  1. SabreEnergy

    SabreEnergy UKBF Newcomer Free Member

    Posts: 29 Likes: 3
    I joined the AA for breakdown cover this year and when I come to enter the fee into my accounts I cannot find any reference to whether the fee includes VAT or not. There is no mention of VAT anywhere in the terms and conditions or a VAT number on the correspondence.

    Is this kind of service zero rated? And under what category should it appear in my accounts? (quickbooks).

    Thanks in advance.
    Oliver
     
    Posted: Aug 6, 2009 By: SabreEnergy Member since: Nov 3, 2008
    #1
  2. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Newcomer Full Member

    Posts: 13,271 Likes: 2,881
    Are you a limited company or sole trader?

    Just trying to establish if this can be claimed in the business i.e. for a limited company do you have a company car?

    General rule - invoice has to show vat to be able to claim it.
     
    Posted: Aug 6, 2009 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #2
  3. SabreEnergy

    SabreEnergy UKBF Newcomer Free Member

    Posts: 29 Likes: 3
    Thanks Elaine.

    I'm a sole trader with one fully expensed vehicle for business i.e. others available for non-business use. Is this something I shouldn't be claiming for?

    It just surprised me that there was no mention of VAT anywhere on the AA documents. It only refers to £22 for membership fees and £54.50 for insurance premium.
     
    Posted: Aug 6, 2009 By: SabreEnergy Member since: Nov 3, 2008
    #3
  4. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Newcomer Full Member

    Posts: 13,271 Likes: 2,881
    Financial services products do not have vat on them e.g. insurance.
     
    Posted: Aug 6, 2009 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #4
  5. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Newcomer Full Member

    Posts: 13,271 Likes: 2,881
    You can claim for the AA cover in your situation as a sole trader with your car.

    Note to any limited companies - this can only be claimed back if it is for a company car.
     
    Posted: Aug 6, 2009 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #5
  6. SabreEnergy

    SabreEnergy UKBF Newcomer Free Member

    Posts: 29 Likes: 3
    Many thanks. Good news then.
     
    Posted: Aug 6, 2009 By: SabreEnergy Member since: Nov 3, 2008
    #6