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  • FIRST POST
    • andyuk2005
    • By andyuk2005 9th Apr 18, 5:05 PM
    • 102Posts
    • 8Thanks
    andyuk2005
    VAT on fuel for rental van & VAT on dual use vehicle
    • #1
    • 9th Apr 18, 5:05 PM
    VAT on fuel for rental van & VAT on dual use vehicle 9th Apr 18 at 5:05 PM
    Hi all!

    This is probably a commonly asked question, but for the life of me I can't a straight answer anywhere!

    I have a VAT registered business. I often rent a van from a usual vehicle rental place. I use the vehicle purely for business, usually for only 2 or 3 days. Am I able to claim VAT back for the fuel I use in that vehicle?

    Second question: I hope to purchase my own van in the future, as the renting is a bit of a pain! I'd use the van for both business and personal use. It will likely be a small van, with seats in the back which I can fold down to transport stuff. Probably about 50:50 business and personal use. I'm happy to keep logs/mileage records. Am I able to claim back any VAT on that vehicle if I provide detailed and accurate records etc?

    Thanks very much for any helps folks!
Page 1
    • UglyJoe
    • By UglyJoe 9th Apr 18, 6:05 PM
    • 26 Posts
    • 14 Thanks
    UglyJoe
    • #2
    • 9th Apr 18, 6:05 PM
    • #2
    • 9th Apr 18, 6:05 PM
    Hi all!

    This is probably a commonly asked question, but for the life of me I can't a straight answer anywhere!

    I have a VAT registered business. I often rent a van from a usual vehicle rental place. I use the vehicle purely for business, usually for only 2 or 3 days. Am I able to claim VAT back for the fuel I use in that vehicle?

    Second question: I hope to purchase my own van in the future, as the renting is a bit of a pain! I'd use the van for both business and personal use. It will likely be a small van, with seats in the back which I can fold down to transport stuff. Probably about 50:50 business and personal use. I'm happy to keep logs/mileage records. Am I able to claim back any VAT on that vehicle if I provide detailed and accurate records etc?

    Thanks very much for any helps folks!
    Originally posted by andyuk2005
    Q1. - Yes - with a valid vat receipt.

    Q2. - ,Relating to the vehicle itself, I don't think so due to the personal use
    You can for fuel used for business purposes - supported by valid vat receipts.
    Last edited by UglyJoe; 09-04-2018 at 6:08 PM.
    • andyuk2005
    • By andyuk2005 10th Apr 18, 11:24 AM
    • 102 Posts
    • 8 Thanks
    andyuk2005
    • #3
    • 10th Apr 18, 11:24 AM
    • #3
    • 10th Apr 18, 11:24 AM
    A limited company.

    Thanks UglyJoe for the info! I don't suppose you know where it says clearly either on HMRC website or similar regarding the VAT back on business fuel?

    Many thanks for your help!
    • UglyJoe
    • By UglyJoe 10th Apr 18, 12:59 PM
    • 26 Posts
    • 14 Thanks
    UglyJoe
    • #4
    • 10th Apr 18, 12:59 PM
    • #4
    • 10th Apr 18, 12:59 PM
    https://www.gov.uk/reclaim-vat/cars
    • Savvy_Sue
    • By Savvy_Sue 10th Apr 18, 3:03 PM
    • 39,037 Posts
    • 35,916 Thanks
    Savvy_Sue
    • #5
    • 10th Apr 18, 3:03 PM
    • #5
    • 10th Apr 18, 3:03 PM
    If ltd company, speak to your accountant. If you don't have one, this is precisely the kind of question where they can save you more money than they cost.
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    • andyuk2005
    • By andyuk2005 10th Apr 18, 4:10 PM
    • 102 Posts
    • 8 Thanks
    andyuk2005
    • #6
    • 10th Apr 18, 4:10 PM
    • #6
    • 10th Apr 18, 4:10 PM
    Thanks UglyJoe for the link. I had visited that one before but initially thought it wasn't details enough. I suppose under the title 'Fuel Costs' it says 'You can reclaim all the VAT on fuel if your vehicle is used only for business.' is actually pretty self explanatory!

    It was actually my accountant who said that I couldn't claim the VAT back on the hire vehicle fuel, I think I'll go back to them and ask them to double check!

    Frustratingly it also means I'll be less confident in their answer regarding the dual purpose vehicle!
    • 00ec25
    • By 00ec25 10th Apr 18, 7:55 PM
    • 6,989 Posts
    • 6,661 Thanks
    00ec25
    • #7
    • 10th Apr 18, 7:55 PM
    • #7
    • 10th Apr 18, 7:55 PM
    A limited company.
    Originally posted by andyuk2005
    you ask specifically about a VAN therefore be very careful not to confuse the rules about cars with those about vans in the context of a Ltd Co. Pay particular attention to "car derived vans" since you refer to wanting fold down seats - they are not vans....

    guidance is published under VAT notices which your accountant should know inside out:

    https://www.gov.uk/government/publications/vat-notice-70064-motoring-expenses/vat-notice-70064-motoring-expenses

    sadly if your accountant is categorically saying you cannot recover VAT on a hire van then it may either be: a) miscommunication or b) time for a new accountant

    also see:
    https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit50600

    https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit51500

    https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit50900

    https://bishopfleming.co.uk/is-it-a-car-is-it-a-van-or-is-it-a-car-derived-van-or-combi-van/

    be very careful with "Kombi" vans as there have been recent tax tribunal cases where VAT claims have been overturned.

    http://www.uhy-uk.com/resources-publications/tax-hub/tax-blog/landmark-decision-on-benefit-in-kind-treatment-of-vw-kombis/ Someone I deal with had to reply that they would be selling their brand new 45,000 cost VW when informed of that case as it would cost them near 6k per year in benefit in kind tax having purchased it through their company...
    Last edited by 00ec25; 10-04-2018 at 8:11 PM.
    • andyuk2005
    • By andyuk2005 11th Apr 18, 3:10 PM
    • 102 Posts
    • 8 Thanks
    andyuk2005
    • #8
    • 11th Apr 18, 3:10 PM
    • #8
    • 11th Apr 18, 3:10 PM
    FYI I have confirmed with my accountant that VAT can be reclaimed if 100% of its use is for business. I think they were under the impression I used it for personal use too, which wasn't the case as the receipts corresponded to the rental vans I used the fuel for.

    Thanks for your help folks. I shall also update here regarding purchasing a van as 00ec25 has explained, its a very complicated process!

    Thanks folks!
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