VAT on van with windows

[dilby]

Hi all - I've recently purchased a van for my business. I had discussed with my accountant that I needed one for travel where I conduct various video shoots with 1 or 2 others, and we needed the space for the gear. I've purchased it and decided to put a window in over the xmas period in my down time and at some point some seating, as we are often shooting in remote areas, and being able to sit in there, eat and review our footage changes everything for us. However my accountant has told me that by putting a window in it it's not not claimable as a commercial vehicle. He's super hard to get a hold of at the moment (another story) and was hoping if anyone would be kind enough to offer a second opinion or know of a workaround. I'm totally gutted as it's a huge chunk of VAT i was planning on getting back and it's totally a legitimate business expense for me; I can't keep on using my car as all my gear doesn't fit so I'm going to have to use the van commercially but have it not classed as a commercial vehicle! Seems so odd!

Thanks again

 

[STDFR33]

Despite the seats and windows, what is the payload?

 

[The Byre]

A new accountant is called for here!

You can read up on this silly subject here - https://www.gov.uk/government/publications/hm-revenue-and-customs-car-derived-vans-and-combi-vans

If a vehicle is exclusively used for a VAT-registered business and there is no private use, the VAT can be reclaimed.

 

[dilby]

Despite the seats and windows, what is the payload?

Payload is 1575kg

A new accountant is called for here!

You can read up on this silly subject here - https://www.gov.uk/government/publications/hm-revenue-and-customs-car-derived-vans-and-combi-vans

If a vehicle is exclusively used for a VAT-registered business and there is no private use, the VAT can be reclaimed.

Thanks, that's interesting. However it won't be exclusively business; mostly but still a bit of personal use unfortunately. You're not wrong it's a silly subject though; the more I'm reading now the more my tiny brain hurts!

 

[STDFR33]

If a vehicle is exclusively used for a VAT-registered business and there is no private use, the VAT can be reclaimed.

Not the case.

 

[STDFR33]

Payload is 1575kg



Thanks, that's interesting. However it won't be exclusively business; mostly but still a bit of personal use unfortunately. You're not wrong it's a silly subject though; the more I'm reading now the more my tiny brain hurts!

If the payload still exceeds a tonne, then it's a van for VAT purposes.

Though it could still be a car for corporation tax / income tax purposes.

 

[UK Contractor Accountant]

VIT51800 - Motoring expenses: conversion of a commercial vehicle into a car - HMRC internal manual - GOV.UK

www.gov.uk

 

[dilby]

If the payload still exceeds a tonne, then it's a van for VAT purposes.

Though it could still be a car for corporation tax / income tax purposes.

Thanks - clear as mud ? Would there still be a BIK to pay then? That's my concern, it seems to not make it worthwhile as it's huge

 

[dilby]

VIT51800 - Motoring expenses: conversion of a commercial vehicle into a car - HMRC internal manual - GOV.UK

www.gov.uk

Thanks - that seems both conclusive but also very unfair!

 

[The Byre]

Not the case.

HMRC write on their website " Where a vehicle is classed as a passenger car input tax is not normally recoverable if the vehicle is available for private use."

So my 30 cents worth would be to not make it available privately. As it stands, it looks like and smells like a van.

 

[STDFR33]

Thanks - clear as mud ? Would there still be a BIK to pay then? That's my concern, it seems to not make it worthwhile as it's huge

Probably. The devil is in the detail.

 

[STDFR33]

HMRC write on their website " Where a vehicle is classed as a passenger car input tax is not normally recoverable if the vehicle is available for private use."

So my 30 cents worth would be to not make it available privately. As it stands, it looks like and smells like a van.#

That's more difficult than it looks, particularly for one man band limited companies.

 

[dilby]

That's more difficult than it looks, particularly for one man band limited companies.

Yup It's just not possible to keep this 100% business use unfortunately

 

[UK Contractor Accountant]

HMRC v Coca-Cola (GB) Ltd

whoops!