Vans, VAT, and BIK
Discussion
(originally in VW thread but no responses.....)
VW Transporters: Most are sold +VAT, so clearly owned by companies.
Am looking at Kombis, which are vans for VAT purposes if payload >1 tonne (so T32) and so the co can claim the VAT back and 100% capital allowance in the first year.
But they are cars for Benefit in Kind so whopping for tax purposes - so the only way it makes sense for these to stlll be business-related is for all to be T32's and for there to be no personal use whatsoever. Which is, to put it mildly, unlikely. Or else people are happy paying full BIK costs, though usually most opt for co. car payment instead - and so they won't be available s/h as +VAT.
So, the question - are people buying (esp non-T32's) through companies and paying either no BIK or van only on the basis that they can claim ignorance, or feel they won't get caught - or am I missing something?
I just don't understand quite why there are so many s/h that are +VAT, especially those that are not T32s. It makes no sense!!
VW Transporters: Most are sold +VAT, so clearly owned by companies.
Am looking at Kombis, which are vans for VAT purposes if payload >1 tonne (so T32) and so the co can claim the VAT back and 100% capital allowance in the first year.
But they are cars for Benefit in Kind so whopping for tax purposes - so the only way it makes sense for these to stlll be business-related is for all to be T32's and for there to be no personal use whatsoever. Which is, to put it mildly, unlikely. Or else people are happy paying full BIK costs, though usually most opt for co. car payment instead - and so they won't be available s/h as +VAT.
So, the question - are people buying (esp non-T32's) through companies and paying either no BIK or van only on the basis that they can claim ignorance, or feel they won't get caught - or am I missing something?
I just don't understand quite why there are so many s/h that are +VAT, especially those that are not T32s. It makes no sense!!
Does the benefit depend on the type of use, there used to be exemptions for staff who had no fixed place of work such as builders
(a van commuting from home to ever changing work address was not counted as private commuting as it was part of the job,)
(a van commuting from home to ever changing work address was not counted as private commuting as it was part of the job,)
Edited by AndyAudi on Wednesday 5th June 23:52
Insignificant private use of a van is allowed; commuting too and from work with a van is allowed; storing van at home at night is allowed......
taking kids to school, doing weekly shopping, taking mountain bikes to woods: these are not insignificant and so van BIK would be payable.
But since the Kombi isn't a van, commuting to and from work counts as private and so full car BIK is payable.....
taking kids to school, doing weekly shopping, taking mountain bikes to woods: these are not insignificant and so van BIK would be payable.
But since the Kombi isn't a van, commuting to and from work counts as private and so full car BIK is payable.....
Gassing Station | Business | Top of Page | What's New | My Stuff