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Van purchase finance

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Hi
I'm looking to buy a van for my limited company but as we are a new business so won't credit, I could get it in my name but is there away to claim the vat? 

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  • Grumpy_chap
    Grumpy_chap Posts: 18,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    gavin7 said:
    Hi
    I'm looking to buy a van for my limited company but as we are a new business so won't credit, I could get it in my name but is there away to claim the vat? 
    As a new business, are you even registered for VAT?
  • Jeremy535897
    Jeremy535897 Posts: 10,732 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    A limited company, even if registered for VAT, cannot normally recover input tax on invoices addressed to someone else. There are exceptions, like employees incurring travel expenses, or where there is clear evidence that the purchase was on behalf of the company, but this is not an argument likely to succeed where the asset would not have been sold to the company by the vendor, and the finance to buy the asset, as well as the invoice for the asset, is in the name of an individual.
  • gavin7 said:
    Hi
    I'm looking to buy a van for my limited company but as we are a new business so won't credit, I could get it in my name but is there away to claim the vat? 
    I think you might be creating issues for yourself if you have a Ltd Co but the van in your name. it won't be an asset of the business and that may well complicate things down the line when it comes to accounting for it or associated costs.

    With regards getting credit for the business could you buy it as the business with you personally guaranteeing the finance?  
  • Savvy_Sue
    Savvy_Sue Posts: 47,308 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Have you asked your accountant for advice on best way to do this?
    Signature removed for peace of mind
  • gazfocus
    gazfocus Posts: 2,466 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Just another thing to think about (as I’ve been looking to buy a van), a lot of ‘personal car finance’ such as those offered through the likes of ClearScore won’t allow you to use car finance on a ‘commercial vehicle’. I got offered finance at 8.8% and was gutted to see I couldn’t use it on a van. 
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