Campervan Hire

[Mike the Van]

I have got a fair way along with an idea of hiring out VW old style campervans for holidays, weddings etc.

The question is whether to be VAT registered or not ?
What are the benefits or disbenefits ?
There appear to be advantages in being able to claim back VAT for the initial purchase of the van(s), but it is a small start up business with one van first of all.
The vans I hope to use are the old style, that are still made in Brazil and imported and fitted out in the UK . The start up costs are therefore high, and being able to claim VAT back, helps the initial viability in the first year.

Mike the Van

 

[Smudge]

Hi Mike. Fellow Dubber myself mate. If you decide not to register for VAT. You can claim back your VAT for the previous 2 years of trading.

Good luck with the business.
Were are you based?

 

[Orangutan Amy]

Hi Mike,

What a fab idea! Where are you based? Do you only hire out locally? Can you send me your rates?

...Back to the VAT question, as a potential customer I would say to avoid becoming VAT reg (especially in light of what Smudge says) for as long as poss as if you're hiring out for weddings and hols then most of your customers are going to be private rather than businesses and won't be able to claim the VAT back that you have to charge them.

Amy