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Customs really don't like giving back the VAT on the purchase of a car. Even if you use it 100% for business journeys, they will argue that it's available for private use if you wanted, and that's enough to deny all the input tax on the cost. It doesn't make much sense - which is why the rule's so hard to argue against. There have been a couple of recent cases in the High Court, and one showed that it is possible to win (Customs may keep on arguing, though). A company bought a car for business use by the managing director, and recorded a board minute saying that he wasn't to use it for anything else. Customs said it was still physically available for private use, but the judge agreed with the company that this was enough to show it did not intend to make the car available privately. In another case, the trader had a number of cars which were used for business driving by employees. Customs tried the same argument - and won, because there was nothing as strong as a board minute to show the trader's intentions. There was just an 'understanding' that the cars would not be used privately. Plus, the trader was an individual, and he could have used the cars privately himself - which a company obviously can't. If you have a car which you genuinely only use for business, it's worth thinking about whether you can get the VAT back on it. After all, it's likely to be a lot of money. But you have to recognise that Customs are likely to argue. We will be pleased to advise you on whether you are likely to win.  |