Buying a commercial vehicle for private use

[gsfrontera]

Hi folks.

I have been looking at a pickup type vehicle purely for private use. Looking at the ones that are for sale some are plus vat some are not.

Im not sure what all this vat business is about. I know it relates to businesses and they may be in a position to claim it back, but as a prvate buyer, would I be liable for vat on all vehicles, or just the ones that say plus vat? and why are some plus vat and others not?

Someone please give us a clue?

[cragswinter]

You will pay the vat, he will take that vat & give it to the tax man.

It makes absolutely no difference to you.

The vehicle will no longer be "vat qualifying" as it is no longer in the hands of a vat registered company, it simply becomes a vehicle to be sold at a price.

[gsfrontera]

cragswinter said:

You will pay the vat, he will take that vat & give it to the tax man.

It makes absolutely no difference to you.

The vehicle will no longer be "vat qualifying" as it is no longer in the hands of a vat registered company, it simply becomes a vehicle to be sold at a price.

So what your saying is if I buy a vehicle for 10k plus vat (12k). and I sell it the next day to my mate, I could only sell it for cost price(10k), unless I could rip him off and charge him 11k. What I am saying is would I be able to charge him the vat or not?

If im understanding you right then, it would be a lot better for me to buy one thats not plus vat? Because the vat has already been paid?

[marshalla]

gsfrontera said:

So what your saying is if I buy a vehicle for 10k plus vat (12k). and I sell it the next day to my mate, I could only sell it for cost price(10k), unless I could rip him off and charge him 11k. What I am saying is would I be able to charge him the vat or not?

You can charge him whatever you like, whether he'll pay it is another matter.

[BonzoG]

You will pay VAT regardless. If it says 'plus vat', then that's a price exclusive of VAT and you need to add VAT to get your actual price.

You can sell it to your mate for whatever you like.

[xRIEx]

They are advertised as "+ VAT" because if a VAT-registered entity buys the vehicle they can claim the VAT back, same as any other VAT-qualifying purchase they make. Same reason business vehicle leasing figures are quoted + VAT, also office/computer equipment and consumables, etc etc.

[cragswinter]

marshalla said:

You can charge him whatever you like, whether he'll pay it is another matter.

Exactly, people get hung up on this but it makes absolutely no difference-buy the vehicle at the price you want to pay.

To use your example, why would you be ripping your mate off-you paid 12 grand, if you only asked 11 off him you'd be neither tight nor generous-just stupid

Think of it like this:
A vat registered company can claim the vat back on the "plus vat" vehicle. That's very nice for them, & seeing as they're giving the tax man 20% of all their turnover (not profit-turnover) its quite within their right!

[Vladimir]

cragswinter said:

Exactly, people get hung up on this but it makes absolutely no difference-buy the vehicle at the price you want to pay.

To use your example, why would you be ripping your mate off-you paid 12 grand, if you only asked 11 off him you'd be neither tight nor generous-just stupid

Think of it like this:
A vat registered company can claim the vat back on the "plus vat" vehicle. That's very nice for them, & seeing as they're giving the tax man 20% of all their turnover (not profit-turnover) its quite within their right!

And then they'll get shafted for BIK tax, which is utterly ruinous. We looked into it for our VW California. We ran away very fast and bought it ourselves instead.

[HeatonNorris]

How bizarre - a Transporter Kombi is classed as a commercial for BIK purposes, but if you put a bit more luxury into it and call it a California, you get hit for the same charge as a car.

[V8A*ndy]

gsfrontera said:

Hi folks.

I have been looking at a pickup type vehicle purely for private use.

You might want to check out insurance cost on a commercial type vehicle. I use a Kangoo for personal/private use and the insurance is very high. Almost double my Z4.

[YeahYeahWhatever]

Buy a truck for 10k plus vat, or 12k and no vat. That about sums up what's on offer certainly on eBay

[YeahYeahWhatever]

Buy a truck for 10k plus vat, or 12k and no vat. That about sums up what's on offer certainly on eBay

[cragswinter]

Vladimir said:

And then they'll get shafted for BIK tax, which is utterly ruinous. We looked into it for our VW California. We ran away very fast and bought it ourselves instead.

Only if you personally see any benifit over & above that which the business sees.