VAT on used cars

[RS404]

My employer is buying a company car for a colleague, the car is a VAT qualifying ex demo. The dealer has told my boss that he can claim the VAT back but the accountant swears we can't. Can anyone advise me on this?

[Jgtv]

Cant claim vat on cars in the vast majority of circumstances.
Listen to your accountant thats what you pay him for.

[ralphrj]

http://www.hmrc.gov.uk/manuals/bimmanual/BIM31545....

VAT incurred on the purchase of motor cars that are made available for private use is not deductible input tax unless the motor car is predominantly for use as a taxi, self-drive hire car, or for driving tuition.

[RS404]

Oh well. Thanks for the advice.

[Ean218]

Company motorbikes on the other hand are a much greyer area, accounts wise;)

[curlie467]

Hmm, i think i would be inclined to listen to an accountant rather than the guy who is trying to sell the car, he will tell you anything!