New van

elmolesto

I'm thinking of getting new wheels:).
How does it work for claiming the Vat back?
Can I either choose to get it in one lump sum or get it over the lenght of the finance?

Thanks

Mr. Incognito

I think you are confusing VAT with capital allowances.

If you ar buying the Van for business purposes the VAT can be reclaimed in your next VAT return.

Capital allowances are spread over the life of the van, (I think 5 years for motor vehicles but someone might correct this if it is wrong)

rob accounts

If buying by finance lease, the Vat is claimed over the term of the lease. For tax purposes, the van is also written off over the term of the lease as the repayments are allowed for tax. If buying by hire purchase, the total Vat on the purchase of the van may be claimed on next Vat return. The cost of the van (exclusive of Vat) is written off for tax purposes over 8 years.

elmolesto

I'm indeed buying the van for business purposes.

Can I reclaimed the full Vat on it on my next tax return ( I'm going to get a finance within the garage. )?

dk22

You need to ensure you are getting the commercial van under a hire purchase agreement to claim the VAT back in the next period. Also if you generally have a VAT liability and you all of a sudden submit a VAT reclaim revenue will look for back up on the claim so ensure you have the proper agreement documentation on hand to send a copy to Revenue if requested.