Pooled cars

mc25

Please can somebody advice me, could i claim back VAT on pooled cars bearing in mind they are on hire purchase (still paying the finance).

Also, if a company want to sponsor a local boys football team, how do i treat the amount spent for VAT or Tax purposes? Bearing in mind there will be no advertising for the company involved at all.
Any advice will be appreciated. Thanks

Peter W

You can reclaim the VAT on a pool car. As per para 3.7 of VAT Notice 700/64, the car needs to be:

• normally kept at the principle place of business
• not allocated to an individual and
• not kept at an employee’s home.

The fact that it is on hire purchase does not make any difference, but check the agreement carefully to make sure it IS hire purchase.

Nilesh Mandvia

On sale of pooled car

If you claim full vat on purchases, just one more point to remember when you sell a car or vehicle which is in pooled you have to pay vat on sale of car.

Nilesh

mc25

Thanks alot for you advice. very much app.