AA Breakdown Cover and VAT

[SabreEnergy]

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

 

[elaine@cheapaccounting]

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.

 

[SabreEnergy]

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.

 

[elaine@cheapaccounting]

Financial services products do not have vat on them e.g. insurance.

 

[elaine@cheapaccounting]

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.

 

[SabreEnergy]

Many thanks. Good news then.