VAT reclaim 4motion

[Sturge]

Hi

Wanting to order a 204 swb DSG 4motion and wonder if anyone has successfully done a VAT reclaim or had issues with them saying NO? Likewise for the benefit in kind as a van.

Thanks

 

[Dave67]

Yes I reclaimed the VAT off my T32 Kombi last year and do BIK for it each year............. no issues with my accountant or HMRC over it.

 

[Sturge]

and that is the 4motion DSG?

 

[Scruffy]

With the VAT, its all about the payload. Do you still have 1000kg or over in payload?

 

[ZipcodeUK]

I thought the 4motion t32 payload came in just under the magic 1000KG requirement?

 

[Sturge]

it does, hence the question. As I understand it though, the 1000kg is about pick ups more than vans, however I'm trying to ascertain the probability of falling foul of VAT man or BIK.

 

[HootingOwl]

The 1000kg payload is important for VAT reclaim.

 

[HootingOwl]

And you are not going to convince hmrc that it is a van for BIK purposes. It is a car and will be taxed as such - but VAT man will treat it as a van if payload is over 1000kg

 

[Sturge]

I know all that. I’m trying to Ascertain if people have fallen foul of it and not been able to claim and have been hauled up on it. Theory v reality

 

[Keaney]

Yeah I’m in the same boat... went for manual 4 motion t32 panel van and all looking fine with the accountant and claiming the vat.

 

[HootingOwl]

If you are asking what is the probability of getting caught, then toss a coin. The cost of getting caught is sufficiently high to not risk it by following the rules. The recent HMRC ruling on kombis and the clear rules for VAT mean there is no grey area. I have had a tax investigation and they are very thorough, shining a torch up your bum to see what you may be hiding up there.

 

[Sturge]

yes, that what I am thinking. Maybe panel van is the answer and convert later on to kombi.

 

[HootingOwl]

That is what I would do. Order the panel van and spec swivel seats - this deletes the bulkhead. Perfect for kombi conversion. Get Oxford T5 to fit Caravelle rails and then get some windows fitted.
I found that vehicle acquisition and disposal attracts the most scrutiny from the tax inspector. I can assure you that there is no give, only take. They will not overlook any deviation no matter how small. They are robots with no common sense or humanity. They will fight to the death over a £2 expense claim. Good old VW valued my van at bobbins when i looked at Px so that set a low price for market value with written evidence.

 

[Keaney]

Out of interest where would you guys draw the line in company expenses. Would say a new set of allows and tyres be a company expense if the existing wheels were to get snow tyres?

I have big plans for mine... also what if they find it’s now long a panel van and now a camper but v5 is still panel van?

 

[Sturge]

I think it is all about what it is constructed as. Weight when constructed etc.

In terms of expense best to ask your accountant. Depends on nature of business etc. I have a 3 year old discovery HSE luxury at the moment but load it to the roof with cables , servers , step ladders , drills etc depending on job in doing. It is a private vehicle that I am hammering for my business so a van fits the bill much better. To my mind i drive hundreds of miles some days so winter wheels justifiable. However that would be down to the accountant to sign off on the accounts as ok.

 

[Sturge]

Thanks Hootingowl. I’ve already had a quote from
Oxford t5 so think I may go that route as it then is unarguable it is a van.

The only downside I can see is comfort dash so may need to retrofit that.

 

[HootingOwl]

No problem putting wheels and tyres through the books. A set of steels from vw would be as much as aftermarket alloys.
As for having a camper on your books as a panel van, hmrc would have you for that. Best to sell it to yourself at a knock down price and write off the loss against tax. Then claim mileage for business use as a private vehicle.

 

[Sturge]

just to round this off, as I dont need the rear seats, I'm going to get a T32 panel van, with the options I want to make it nice as my daily vehicle and then just use it as a van. I need the van for work, will make life a lot easier, and then use the existing family car as the car and stop hammering it for business. Clear as anything then for HMRC.