VAT on private number plate

LynWest

Hi all just had a strange on in. I am just preparing a clients VAT return and i have come across an invoice where he has bought a private number plate. There is £1016 VAT on the invoice! Surely he cannot claim this? He is a sole trader and using the car for private and business. Surely this does not satisfy the wholly and exclusively clause. If anyone can confirm my thinking or tell me otherwise i should much appreciate it! Many thanks

kelsmick

http://www.hmrc.gov.uk/manuals/vitmanual/vit54500.htm here is the HMRC guidless to it. Usually you cannot claim back on accessories for cars. Does his plate have any relation to the business? otherwise you wouldn't be able to claim any of it back.

KernowAccountant

LynWest said:

Hi all just had a strange on in. I am just preparing a clients VAT return and i have come across an invoice where he has bought a private number plate. There is £1016 VAT on the invoice! Surely he cannot claim this? He is a sole trader and using the car for private and business. Surely this does not satisfy the wholly and exclusively clause. If anyone can confirm my thinking or tell me otherwise i should much appreciate it! Many thanks

FWIW, the wholly and exclusively "clause" [concept] doesn't exist in respect of VAT.

LynWest

Thanks for the clarification on the wholly and exclusively KernowAccountant. Thanks for the link Kelsmick. The number plate has no bearing on his business in fact i think it is his wife's initials followed by the number 1.