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Claim back VAT on a new vehicle
http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=7&t=29120		 Page 1 of 1
Author:  Stepper [ Thu May 05, 2016 3:40 pm ]
Post subject:  Claim back VAT on a new vehicle
I've been kicking along as a private hire sole trader, self assessment tax payer, not VAT registered, no accountant.
I'm going to buy a new car, possibly a TX4 Euro6 and everywhere I look it says I can claim back the VAT on the purchase. It's obviously only used for work and it's a purpose built vehicle. Obviously I'll be making an investment in to my company but everywhere I look it says there is no way I can get any tax break for making this investment. Who knows anything? Thank you in advance.
Author:  bloodnock [ Thu May 05, 2016 4:04 pm ]
Post subject:  Re: Claim back VAT on a new vehicle
Stepper wrote:
I've been kicking along as a private hire sole trader, self assessment tax payer, not VAT registered, no accountant.
I'm going to buy a new car, possibly a TX4 Euro6 and everywhere I look it says I can claim back the VAT on the purchase. It's obviously only used for work and it's a purpose built vehicle. Obviously I'll be making an investment in to my company but everywhere I look it says there is no way I can get any tax break for making this investment. Who knows anything? Thank you in advance.


You'll only Get VAT back if you become VAT registered and boy unless your a glutton for Punishment your better off out of it because then you'll need to start charging vat on all your runs, continually doing Vat returns etc, just not worth the hassle unless your a big hitter. been there got the T shirt, never again.
Author:  grandad [ Thu May 05, 2016 4:22 pm ]
Post subject:  Re: Claim back VAT on a new vehicle
bloodnock wrote:
Stepper wrote:
I've been kicking along as a private hire sole trader, self assessment tax payer, not VAT registered, no accountant.
I'm going to buy a new car, possibly a TX4 Euro6 and everywhere I look it says I can claim back the VAT on the purchase. It's obviously only used for work and it's a purpose built vehicle. Obviously I'll be making an investment in to my company but everywhere I look it says there is no way I can get any tax break for making this investment. Who knows anything? Thank you in advance.


You'll only Get VAT back if you become VAT registered and boy unless your a glutton for Punishment your better off out of it because then you'll need to start charging vat on all your runs, continually doing Vat returns etc, just not worth the hassle unless your a big hitter. been there got the T shirt, never again.

This is not the truth. Yes you do need to be VAT registered to claim back the VAT on the car. If you going to get a TX4, I would guess that you will be Hackney. This means that you can't add VAT to the price because you can't charge more than the meter shows. VAT is included in the fare. You do not necessarily need to fill out VAT returns. You would probably qualify for the fixed rate scheme which means that you Can claim back the VAT on the vehicle purchase but you do not claim back any of the other VAT that you pay and you don't pay the full rate of VAT. The fixed rate is something like 9.5 or 10% of your turnover.
Author:  bloodnock [ Thu May 05, 2016 7:07 pm ]
Post subject:  Re: Claim back VAT on a new vehicle
grandad wrote:
bloodnock wrote:
Stepper wrote:
I've been kicking along as a private hire sole trader, self assessment tax payer, not VAT registered, no accountant.
I'm going to buy a new car, possibly a TX4 Euro6 and everywhere I look it says I can claim back the VAT on the purchase. It's obviously only used for work and it's a purpose built vehicle. Obviously I'll be making an investment in to my company but everywhere I look it says there is no way I can get any tax break for making this investment. Who knows anything? Thank you in advance.


You'll only Get VAT back if you become VAT registered and boy unless your a glutton for Punishment your better off out of it because then you'll need to start charging vat on all your runs, continually doing Vat returns etc, just not worth the hassle unless your a big hitter. been there got the T shirt, never again.

This is not the truth. Yes you do need to be VAT registered to claim back the VAT on the car. If you going to get a TX4, I would guess that you will be Hackney. This means that you can't add VAT to the price because you can't charge more than the meter shows. VAT is included in the fare. You do not necessarily need to fill out VAT returns. You would probably qualify for the fixed rate scheme which means that you Can claim back the VAT on the vehicle purchase but you do not claim back any of the other VAT that you pay and you don't pay the full rate of VAT. The fixed rate is something like 9.5 or 10% of your turnover.


And how many VAT returns do you do in a year? and Is that 9.5 or 10% of VAT out of the Profits, I guess it must be if you can't increase the price and you were not giving it to the VAT man prior to becoming registered..

I suppose you'd have to weigh the cost of the lost revenue with the VAT you could claim back, If you lose more than you gain then Don't but if you gain more then Do.
Author:  grandad [ Thu May 05, 2016 8:13 pm ]
Post subject:  Re: Claim back VAT on a new vehicle
bloodnock wrote:

And how many VAT returns do you do in a year? and Is that 9.5 or 10% of VAT out of the Profits, I guess it must be if you can't increase the price and you were not giving it to the VAT man prior to becoming registered..


On the flat rate scheme there are no returns to make. The percentage is on turnover not profit. I am on standard rate with 4 returns a year. It takes me about 30 minutes every quarter to complete. It is not that hard.
Author:  edders23 [ Fri May 06, 2016 6:19 am ]
Post subject:  Re: Claim back VAT on a new vehicle
grandad wrote:
bloodnock wrote:

And how many VAT returns do you do in a year? and Is that 9.5 or 10% of VAT out of the Profits, I guess it must be if you can't increase the price and you were not giving it to the VAT man prior to becoming registered..


On the flat rate scheme there are no returns to make. The percentage is on turnover not profit. I am on standard rate with 4 returns a year. It takes me about 30 minutes every quarter to complete. It is not that hard.



Not worth doing unless your turnover is going to exceed the VAT threshold by a significant amount I worked it out once that I would be about £5000 a year worse off so am very careful not to reach VAT thresholds
Author:  bloodnock [ Fri May 06, 2016 7:32 am ]
Post subject:  Re: Claim back VAT on a new vehicle
edders23 wrote:
grandad wrote:
bloodnock wrote:

And how many VAT returns do you do in a year? and Is that 9.5 or 10% of VAT out of the Profits, I guess it must be if you can't increase the price and you were not giving it to the VAT man prior to becoming registered..


On the flat rate scheme there are no returns to make. The percentage is on turnover not profit. I am on standard rate with 4 returns a year. It takes me about 30 minutes every quarter to complete. It is not that hard.



Not worth doing unless your turnover is going to exceed the VAT threshold by a significant amount I worked it out once that I would be about £5000 a year worse off so am very careful not to reach VAT thresholds


The only reason I used to be VAT registered was to Get the VAT back my Minibus, it's runing costs and Minibus Fuel costs on that side of things because I could charge at the clients at Zero rated VAT but still claim back on fuel, the Problem was though my PH side of the Business would have had to Charge VAT on my Fare Prices so I had to run Two separate Businesses with two completely separate sets of accounts, one VAT registered the Other Not....and that's where all the extra work came in.
Author:  wannabeeahack [ Wed May 25, 2016 10:19 am ]
Post subject:  Re: Claim back VAT on a new vehicle
what % of your work is contract/invoiced?

if its 85% or more go vat regd

i paid my vat upfront as deposit by credit card

i had the refund before the CC bill came.....happy days, £3K off my car, vat back off all supplies/fuel/phone/tyres/etc
Author:  wannabeeahack [ Wed May 25, 2016 10:20 am ]
Post subject:  Re: Claim back VAT on a new vehicle
bloodnock wrote:
I had to run Two separate Businesses with two completely separate sets of accounts, one VAT registered the Other Not....and that's where all the extra work came in.


Bet HMRC loved that...not
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