Reclaiming Car Payments from Tax Man

12
Found 19th Jul 2012
I am looking at getting a new car which will mostly be used for work , without a car I can't work .

I was wondering could I claim back the cost of the car from the tax man .

I have just read this -

Cars and motoring expenses: reclaiming VAT
When you buy a car you generally can't reclaim the VAT. There are some exceptions - for example, when the car is used mainly as one of the following:
a taxi
for driving instruction
for self-drive hire
If you lease a car for business purposes you'll normally be able to reclaim 50 per cent of the VAT you pay. But you can reclaim 100 per cent of the VAT if the car is used as one of the following:
exclusively for a business purpose
a taxi, for driving instruction or self-drive hire
You can reclaim all the VAT charged on vehicle repairs and maintenance so long as:
your business pays for the work
there is some business use of the vehicle
You can generally recover the VAT on all other business motoring expenses like fleet management or off-street parking. There are special rules for reclaiming VAT on road fuel used for business purposes.
This guide tells you more about reclaiming VAT on cars and motoring expenses.

Does that mean I can claim back 20% of the price of the car ?.

Anyone got an information or experience of this it would be helpful.

Thanks
Community Updates
MiscCar
12 Comments
Are you using your car as mentioned above? Or purely as a vehicle to take you to and from a place of work? I doubt it's as easy as just saying your car's essential for work because everyone would claim 20% back if that was the case.
no , I have to travel to a lot of different places , a car is essential. Obviously if I need to pop to Sainsburys I am not going to walk.

I just need to know if I'm right, can I claim back 20% of what I pay for the car and anyone have any experience of this.



brock101

no , I have to travel to a lot of different places , a car is essential. … no , I have to travel to a lot of different places , a car is essential. Obviously if I need to pop to Sainsburys I am not going to walk.I just need to know if I'm right, can I claim back 20% of what I pay for the car and anyone have any experience of this.


are you VAT registered (i.e earn over £75000 per year and file quarterly returns)? If not, you cant reclaim VAT otherwise every worker would be doing that
If you are self employed an registered as above - yes

If not - no.
On a side point am I right in thinking that the allowance calculation for a motorcycle is the same as van?
If you claim it is a company car you will have to pay company car tax, which depending on the car can be a lot!

If you have your own limited company and you purchase the car personally, you can claim up to 45 Pence per mile fuel for business purposes.

You then avoid paying the company car tax as well.
I am self - employed , I don't make 75 grand mind but without a car I cant work. So I am thinking my use of the car is the equivalent of a taxi driver.

Sod it ill try , they can only say no
brock101

I am self - employed , I don't make 75 grand mind but without a car I … I am self - employed , I don't make 75 grand mind but without a car I cant work. So I am thinking my use of the car is the equivalent of a taxi driver.Sod it ill try , they can only say no


fact = you cannot reclaim VAT if you arent VAT registered. You dont charge your customers VAT so you cant have your cake & eat it
No but as self employed he can take the price of most company expenses away from any profit he makes and not pay tax on that.
Internet/Phone/fuel/clothes speak to a accountant will be well worth the money.
if you are self employed, its depends on your trade, you can claim for the car as what is called a capital allowance, this means for each year the car is used by the business, you can claim a percentage ( rates can be found on HMRC website)
If the vehicle is a car the rate will be different to that of a van.Vans are plant and machinery, the rate for this is different. This is why for example a taxi is plat and machinery, as its the tool of his trade.

You will need to keep a mileage record, so that you can apportion the business to private use, you can then claim this proportion of all the running expenses eg spare parts, servicing, tax . mot , insurance, fuel.

If you are not VAT registered, you cannot claim the VAT back separately, however VAT will be included in all the expenses that you claim back anyway.

You need to be careful how you use the vehicle, simply because you need a car to get to work, does not make it allowable for tax purposes. eg home to work is a taxable journey.


hmrc.gov.uk/inc…htm


happy tax breaks oO
brock101

Sod it ill try , they can only say no



You don't want to flag up on the tax man's radar.. ever.
mceverready

If you claim it is a company car you will have to pay company car tax, … If you claim it is a company car you will have to pay company car tax, which depending on the car can be a lot!If you have your own limited company and you purchase the car personally, you can claim up to 45 Pence per mile fuel for business purposes. You then avoid paying the company car tax as well.



[ hotukdeals.com/dea…231 ]

thecoldstreamer

What's wrong with the price. I get paid 40p a mile from my work and I … What's wrong with the price. I get paid 40p a mile from my work and I have a 57 reg focus that's bulletproof reliability. Just under 200k on the clock and it only cost me 8 k 3 years old when I got it with 50k on the clock. Who's laughing now Audi drivers loosing all that money



[ hmrc.gov.uk/pay…htm ]

Employee vehicles: mileage payments for business travel

Rate per business mile 2012-13Car: For tax purposes: 45p for the first … Rate per business mile 2012-13Car: For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mileFor NICs purposes: 45p for all business miles

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