I8 ltd company purchase
Discussion
I did this some years ago. Claimed all the VAT back on a car. Every time it went out it did on avergae 200 miles per journey. I Kept an up to date log book for 3 years. Every journey accounted for. I either had fuel bills or hotel bills to prove every journey was legit.
Then i had a VAT inspection. They could not find fault. They went back the 3 years. I followed all the rules. They said i cant claim the VAT back as it is a car. I said "so there is no problem with our van". They said its different its commercial. I asked whats difference between business use and commercial use. Its a car they said. You cant do it. I said i followed all the rules. They asked for the registration document and found i had registered it in my own name. They said why was it not registered in company name if it was for business use. So by default or technicality they made me pay all the vat back plus 8% interest.
Then they wrote to me and said there was a fine of £750 for deliberately mis claiming back VAT.
I said i had done nothing wrong, i knew exactly what i was doing hence log book etc. I had not deliberately mis lead anyone. They said they would take me to court. I said carry on then. The case was then sent to 3 different VAT offices then one day i received a phone call saying they would not take it any further. Loads of letters etc but just a phone call at the end.
If the car was registered by my company; like the van it may have been ok. But the records have to stand up with proof of every journey not just a mileage record saying went from A to B.
Then i had a VAT inspection. They could not find fault. They went back the 3 years. I followed all the rules. They said i cant claim the VAT back as it is a car. I said "so there is no problem with our van". They said its different its commercial. I asked whats difference between business use and commercial use. Its a car they said. You cant do it. I said i followed all the rules. They asked for the registration document and found i had registered it in my own name. They said why was it not registered in company name if it was for business use. So by default or technicality they made me pay all the vat back plus 8% interest.
Then they wrote to me and said there was a fine of £750 for deliberately mis claiming back VAT.
I said i had done nothing wrong, i knew exactly what i was doing hence log book etc. I had not deliberately mis lead anyone. They said they would take me to court. I said carry on then. The case was then sent to 3 different VAT offices then one day i received a phone call saying they would not take it any further. Loads of letters etc but just a phone call at the end.
If the car was registered by my company; like the van it may have been ok. But the records have to stand up with proof of every journey not just a mileage record saying went from A to B.
Gassing Station | Business | Top of Page | What's New | My Stuff