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V.A.T on a new van ?

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    V.A.T on a new van ?

    I'm looking at getting a new van for personal use and traveling to my clients sites. Mileage would be claimed back using the mileage allowance.

    My accountant has said its not worth putting it through my VAT registered limited company due to the TAX liability I will incur.

    The VAN price is £25000 including £4000 worth of VAT in the price. My question is, can I somehow buy the VAN with my business and then re-sell it on to my self at a reduced rate to avoid or reduce the VAT ? My Ltd is currently on the flat rate of VAT scheme, and my quartly VAT returns are around £4.5K

    Many Thanks

    #2
    Sold mine before Brownstuff raised the BIK to ridiculous levels so amounts may even have gone up but I think even if owned part of the year and there was any significant private use you would liable to NI on a BIK of £3000+ for van and £500+ for fuel.

    As you are VAT registered you would have to charge yourself VAT on any sale to you although there would be some saving as a technically 2nd hand van would be worth significantly less. Not totally sure if against any rules but it sounds dodgy to just buy a van and immediately sell it to yourself at a lot less to save VAT. Wouldn't fancy a VAT check finding that out.
    bloggoth

    If everything isn't black and white, I say, 'Why the hell not?'
    John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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