Van and VAT

JJH1969

Can you reclaim 100% VAT on a van purchased by a sole trader under a lease agreement (VAT paid upfront) which will be used for private and business use?

T.C.

If this is a van, then why is there any private use. I would suggest that it should be all business and therefore all claimable.

JJH1969

There is private use as he is employed and self employed and he will be driving to his employed work in the van too.

T.C.

In that case, you will need to discount the 'private use' element of the VAT.