Tax on lease cars

Merlinswife

Hi
I have an nhs lease car, ( not salary sacrifice) - I pay VAT on the cost of the lease and my tax code is adjusted due to it being a BIK. Is this correct that I am in effect taxed twice on this? 

I can see if I was a business I could claim some VAT back but does that apply to individuals?

Can anyone advise?
Thanks

uknick

Yes. it is correct your pay tax on the VAT element.

If you want to reclaim the VAT the only way you can do this is set up a VAT registered business and make the necessary VAT returns.  Of course, this means you would no longer be employed by the NHS as you will have become self employed and will have to invoice them accordingly.  In which case I assume you wont be eligible for the (preferential?) NHS lease rates.

Merlinswife

Thanks for the clarity