VAT on pool car
Discussion
Yes.
However, establishing whether the car is a genuine pool car or not can be quite onerous.
It must genuinely NEVER be used for any private trips. Indeed, it must not be even AVAILABLE for private trips.
Ensuring that keys are handed over at the end of the working day, having company logos on the vehicle and having restricted business only insurance all help to prove that the car is a genuine "pool" car. The car must remain on the business premises AT ALL TIMES when not in use.
Word - of warning - if a director or proprietor uses his home as his business base, it is virtually impossible to establish that a car is a "pool" car for VAT purposes.
As you stated, you must declare VAT on the sale price of the car when it is eventually disposed of - including if it is traded in rather than sold and a normal VAT Sales Invoice should be raised and presented to the "buyer".
However, establishing whether the car is a genuine pool car or not can be quite onerous.
It must genuinely NEVER be used for any private trips. Indeed, it must not be even AVAILABLE for private trips.
Ensuring that keys are handed over at the end of the working day, having company logos on the vehicle and having restricted business only insurance all help to prove that the car is a genuine "pool" car. The car must remain on the business premises AT ALL TIMES when not in use.
Word - of warning - if a director or proprietor uses his home as his business base, it is virtually impossible to establish that a car is a "pool" car for VAT purposes.
As you stated, you must declare VAT on the sale price of the car when it is eventually disposed of - including if it is traded in rather than sold and a normal VAT Sales Invoice should be raised and presented to the "buyer".
Edited by Eric Mc on Sunday 2nd December 12:17
Eric Mc said:
However, establishing whether the car is a genuine pool car or not can be quite onerous.
It must genuinely NEVER be used for any private trips. Indeed, it must not be even AVAILABLE for private trips.
Ensuring that keys are handed over at the end of the working day, having company logos on the vehicle and having restricted business only insurance all help to prove that the car is a genuine "pool" car. The car must remain on the business premises AT ALL TIMES when not in use.
Thanks for the advice Eric. We meet most of the criteria above:It must genuinely NEVER be used for any private trips. Indeed, it must not be even AVAILABLE for private trips.
Ensuring that keys are handed over at the end of the working day, having company logos on the vehicle and having restricted business only insurance all help to prove that the car is a genuine "pool" car. The car must remain on the business premises AT ALL TIMES when not in use.
Business-only insurance - check
Kept on premises overnight - check
Gratuitous advertising vinyls - check
The car is for three purposes really:
1) Our two offices are in Berks and we occasionally get staff to go into London to do work at a telecomms site there.
2) We also need to take components and bodies between our two offices in Berks, e.g. if we are particularly busy at one office and need all hands on deck we will get a few staff to travel over to the other site for a few hours.
3) General admin stuff; e.g. taking something to the Post Office to send signed delivery.
However, we are a 24x7 business. My only concern is that without a management presence on the night shift staff may use the pool car rather than their personal cars to go and get their midnight snack. I suppose this is really a case of how well we implement policy; but I would not want one lapse in policy or errant employee to cause the pool car to lose its "pool" status.
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