Avoiding VAT on a used car...

Flyboy152

If it is without windows behind the driver's seat, then it is a commercial vehicle, of which the VAT is reclaimable.

sumguy

Thats excellent news FlyBoy...

So not being VAT registered, merely a sole trader... what are my options??

I know I could ask friends who are VAT registered but this may effect their entitlements, maybe their is a max entitlement... its a last resort asking others...

Im looking to see if other options exist ??

Many thanks everyone.

Tiddlywinks

sumguy wrote: »

So not being VAT registered, merely a sole trader... what are my options?? You can be a 'sole trader' and VAT registered...

I know I could ask friends who are VAT registered but this may effect their entitlements, maybe their is a max entitlement... its a last resort asking others... Friends cannot claim your VAT through their books... it would not be a legitimate expense for their business activities - there's a word to describe that suggestion: FRAUD.

Im looking to see if other options exist ?? If you're not VAT registered then you cannot reclaim the VAT.

You clearly do not understand the finer point of VAT accounting so speak to an accountant for further advice.

Flyboy152

sumguy wrote: »

Thats excellent news FlyBoy...

So not being VAT registered, merely a sole trader... what are my options??

I know I could ask friends who are VAT registered but this may effect their entitlements, maybe their is a max entitlement... its a last resort asking others...

Im looking to see if other options exist ??

Many thanks everyone.

I would be very wary of trying to circumvent the VAT rules. HMRC are not stupid and neither are they known for their lenient generosity when you get caught. If one of your friends claims for a vehicle they don't own, they and you will be up for a lot of troublesome prying and potentially a fine. If HMRC decide they want to see the van you are driving and it is clearly not the VAT registrant's, I wouldn't rate your chances very highly.

leveller2911

Flyboy152 wrote: »

If it is without windows behind the driver's seat, then it is a commercial vehicle, of which the VAT is reclaimable.

Only if the purchaser is registered for VAT ..........which the OP isn't...

Hammyman

sumguy wrote: »

I know I could ask friends who are VAT registered but this may effect their entitlements, maybe their is a max entitlement... its a last resort asking others...

Im looking to see if other options exist ??

Many thanks everyone.

So after your friends have bought it and then had to put the purchase through their books to get the VAT back, how do you intend to end up with it? If they sell it to you, they have to charge you VAT, especially if you're wanting a receipt so you can put it through your own books.

All I can say is that as a self employed person, you have an abysmal understanding of basic accounting and book-keeping otherwise you'd know that its going to be paid by someone at some point.

leveller2911

You can register yourself for vat and claim the vat back yourself.You can claim all the vat back on purchases for the previous 3 years(provided you kept the receipts)........Down side is you must then charge vat 20% on your labour which then may well make you expensive to your customers and lose the work.......


Then you may de-register and your liable for nearly all of the vat you reclaimed...........Is it worth the hassle? not to mention the extra accountancy costs unless you complete your vat return every 3 months yourself............... Not looking quite such a good deal is it........

sumguy

Many thanks to all whom have helped in the understanding of this question. I love this forum.

Tiddlywinks

sumguy wrote: »

Many thanks to all whom have helped in the understanding of this question. I love this forum.

For tax advice and business related decision making do you really think that relying on the advice of strangers on an internet forum is the best way to go?

What if you'd only got a couple of replies telling you to put it through your friends' accounts?

Just because people reply, doesn't make them right. Just a thought...

sumguy

Thats very true and I appreciate the responses I have been given and also agree with them in principle. Tomorro I will talk to my accountant on the phone to verify if an option exists to avoid paying VAT or if all I can get is the 28% rebate on the purchase price of the car, for replacing my works vehicle next April when I do my Tax return.