Am I crazy for not claiming VAT/corp tax relief on van?

dilby

Hi all - I'm currently trying to buy a vehicle for my work (vat registered limited company) and finding it really confusing and was hoping some kind folks could help me. My accountant is on holidays and while i've been able to get a reply to an email i really can't bother him much more for now, and while i'm without a main vehicle and having to rent one i need to act fast.

In short I am videographer and need to transport lots of gear around. I've just sold a citroen relay van which I had on the business but as my work has expanded and the jobs are bigger i'm finding I need to travel with sometimes a crew of 4 or 5 and therefore need a vehicle with a row of seats in the back. I have been looking at VW Transporters/Vivaros/Customs which have the row of seats in the back but almost always have a window. I've been told by two of the salesmen that having the window means that HMRC class it as a car, while 2 others have told me it's fine.

I've done some reading, and while it's a grey area can see that HMRC do often see a van such as this as a car (although it seems so many do it, and i have no idea how i'm meant to transport a crew around, which is a sign of business growth). I'd also be signwriting the van, so extra frustrating.

So I'm just wondering if there's something i'm missing. I've spoken to two people in the same field who think i'm crazy for not claiming full tax relief, but because in my research I've found that the BIK charge on this vehicle would be over £2k a year and I don't want to get stung in a few years and have a huge bill to pay. It really feels a shame to not be able to claim, if not unfair, but I'm trying to do what's right and what's wise.

Opinions appreciated!

uknick

I'm not fully au fair with the current VAT rules on vehicles, but I'd be surprised if HMRC define Transporters or Vivaros as a car, they look like minibuses/large vans to me.  I think the grey area is more about those double cab pickup trucks people use.  They've been the subject of an HMRC review recently to determine if they're actually cars and therefore lose the VAT advantage.  But, for the time being they remain VAT deductible.      

I'd have thought the CT savings using WDA and the reclaiming of input VAT would exceed any income tax liability.  But, your accountant is more familiar with your overall financial position so you should wait for them to get back before making any decision.

DullGreyGuy

Your second time of asking https://forums.moneysavingexpert.com/discussion/6525307/commercial-vehicle-windows

How come your accountant isn't back yet?

Bookworm105

it will be taxed as a "car" (as you were told in your previous thread)

and to answer your actual question, no, you are not crazy for not claiming it and thus not leaving yourself open to substantial future tax liabilities by chancing the rules