New Client

jackiejackie Feels At HomePosts: 81Registered

I have a new client that came to me last friday, he started in business in may 07, all his tax affairs are up to date. He has recently registered for vat and now has his first vat return, due date 31st Jan.The period stated on the vat return is 01.05.07 - 31.12.08.

He is a licenced delivery driver and has a lease vehicle for which he pays an ammount plus vat each month. I know that if his vehicle had of been bought ,he can claim the vat back from when he bought it but does the same apply when the vehicle is leased or can he only claim back for the last 6 months.

Any adivce on this would be appreciated as soon as possible




  • JJ43JJ43 Feels At Home Posts: 50Registered
    The vehicle is not a fixed asset, its leased, so you could only claim the vat back from when he became vat registered.
  • jackiejackie Feels At Home Posts: 81Registered
    Thank you for the swift response.


  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    I'm pretty sure that if the vehicle is leased you can only claim 50% of the VAT, but check that one out on the HMRC website, it may qualify for 100%
  • jackiejackie Feels At Home Posts: 81Registered
    The vehicle is a commercial van not a car so would it not be 100% claimable?

  • claudialoweclaudialowe Trusted Regular Posts: 275Registered
    Commercial vehicles are eligible for 100% VAT reclaim.

    Cars with an element of private use are restricted to 50% (whatever the business/private split is).

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