VAT on private number plate

LynWest
LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
edited June 18 in AAT member discussion
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

Comments

  • kelsmick
    kelsmick Registered Posts: 88
    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.
    www.essencebookkeeping.co.uk
  • KernowAccountant
    KernowAccountant Registered Posts: 103 Epic contributor 🐘
    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
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
    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.

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