{"id":11359,"date":"2023-06-26T10:25:35","date_gmt":"2023-06-26T10:25:35","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=11359"},"modified":"2023-09-20T05:05:48","modified_gmt":"2023-09-20T05:05:48","slug":"claiming-vat-on-vehicle-expenses","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/employment\/taxation\/vat\/claiming-vat-on-vehicle-expenses\/","title":{"rendered":"Claiming VAT on Vehicle Expenses and Staff Travel Costs"},"content":{"rendered":"

CLAIMING VAT ON VEHICLES<\/strong>: This only applies to new cars that are not available for private use.<\/p>\n

Another stipulation is being able to show that private use is not allowed. One way of doing this is specifying it in the employee contract of employment<\/a>.<\/p>\n

Note<\/strong>: For VAT purposes ‘private use<\/strong>‘ includes travel between home and work. The exception could be where it is a temporary place of work.<\/p>\n

As a rule, businesses can also claim all the VAT on a new car providing its main use is for driving instruction, self-drive hire, or as a taxi.<\/p>\n

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Claiming VAT on Lease Cars<\/h2>\n

In most cases you can claim 50% of the VAT part when you lease a car. But, reclaiming all the VAT on lease cars has certain requirements. The car must only get used for business and must not be available for private use.<\/p>\n

Note<\/strong>: The same rules also apply if its main use is for driving instruction or used as a taxi.<\/p>\n

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VAT on Self Drive Hire Vehicles<\/h3>\n

There may be times when need to hire a car for your business. It could be to replace a company car while it is off the road. In this case you should be able to claim 50% of the VAT content on the hire charge.<\/p>\n

There are other reasons for hiring a car. You may decide to hire a vehicle if you do not own a company car. As a rule, your business can reclaim the total VAT portion providing all the following apply:<\/p>\n