Grenadier now VAT reclaimable

[Lefty]

[UK952]

Does anyone know if it is limited to the 2 seat or does it also apply to the 5 seat commercial too? I believe it is payload weight related so it should be possible in both.
Tony

[bnseven]

As I understand it it qualifies as a Van because it has no rear seats, hence the deleted seat mountings and seatbelt anchorages. The 5 seat is a passenger vehicle and VAT is not reclaimable on that as it doesnt count a a commercial. 2 seater only I am afraid.

[Macboy]

bnseven said:

As I understand it it qualifies as a Van because it has no rear seats, hence the deleted seat mountings and seatbelt anchorages. The 5 seat is a passenger vehicle and VAT is not reclaimable on that as it doesnt count a a commercial. 2 seater only I am afraid.

Totally what I was told.

[UK952]

Ok Thanks, disappointing, as I thought it was possible to reclaim on an amarok and other crew cabs, and also on Combi's like the VW transporter as long as no rear side windows (behind 2nd row of seats) and payload 1 tonne or greater,
Tony

[Mammasaid]

It's never going to happen with a 5 seater due to the weight it won't qualify.

As long as the payload is under a tonne the HMRC thinks it's a car;

https://www.gov.uk/hmrc-internal-manuals/employmen...

[Lefty]

Indeed. Land Rover managed to get an exemption with the old 110 utility wagon but no hope for Ineos.

[2 sMoKiN bArReLs]

Mammasaid said:

It's never going to happen with a 5 seater due to the weight it won't qualify.

As long as the payload is under a tonne the HMRC thinks it's a car;

https://www.gov.uk/hmrc-internal-manuals/employmen...

Does the VAT treatment always follow the Income Tax treatment?

[jeremy996]

2 sMoKiN bArReLs said:

Does the VAT treatment always follow the Income Tax treatment?

No, ultimately it is down to useage and the attitude of the local Inspector of Taxes. If the vehicle is 100% business use, then VAT will be recoverable, but HMRC will need convincing about the use case.

A typically acceptable use would be a a pool car, kept at business premises and only used for work purposes. Remember that home to work commuting is personal mileage and will not be allowable, (there are some exceptions, but HMRC will err on wanting the tax).

[Peterpetrole]

never understand these rules

[2 sMoKiN bArReLs]

Peterpetrole said:

never understand these rules

Nobody does

[Lefty]

I know of a few Grenadiers that are owned by estates, they are kept in the estates and used by anyone working there with, ahem, no private usage allowed. Employees just fill out a log each day recording mileage and sign that it has only been used for business.

This could be done with any car of course