Claiming vat through repurpose of van

[dilbu]

Hi all - bit of a left field question I was hoping someone could give their input on. I bought a T6 to convert into a camper and use for work and play (I travel the country as a videographer). However we’ve had the pleasant surprise of finding out we have a little one on the way and because of that and a combination of hectic work loads the conversion process is now on the back foot and it will solely be used as a commercial vehicle. So my accountant didn’t recommend I claim through business as an expense (including vat as I’m a vat registered limited company) but now says I could backdate a VAT claim but is a little hesitant which doesn’t fill me with confidence. So ALL that to ask - has anyone claimed vat on their van and had any issues as there seems to be so many disputed grey areas (I’ve even read loads of articles where accountants are disagreeing on facts!)

Thanks

 

[Salty Spuds]

Do it! I’ve found the VAT man pretty reasonable as long as you don’t take the piss. If you can sit down and justify your claim, then the worst that will happen is they’ll say no, & refuse the claim.

 

[dubber36]

If you claim the VAT back now, you'll be liable for the VAT on the amount you sell it for down the line. So long term, you only save the VAT on the depreciation (not much at the moment)

I'm sure that most of the conversion costs could be invoiced as office equipment tho'.

 

[jimc91]

You say you are a ltd company, my understanding is that If you purchased the van from the company business account its a company asset so when you come to sell it you would be expected to charge vat on the sale, the fact you didn’t claim the vat on the purchase is your choice (there maybe other rules relating to vehicles I’m not aware of) Buying the van through the company would have reduced your corporation tax. If you bought the van yourself from private funds then it wasn’t bought by the company so you can’t claim the vat - I think you need to talk this through with your accountant again

 

[dilbu]

Thanks for the help everyone. I think the catch is if they it is rejected by the HMRC I'm liable for a large BIK bill! Never simple is it