Great video, I’ve been told by another business owner however the rules are slightly different for an LLP? The vehicle can still be used personally under this structure?
Hi, appreciate the feedback. Re LLP, VAT treatment the same as for a 'normal' company or sole trader . When it comes to personal use then tax treatment, eg capital allowances is a for a sole trader
@@IHateNumbers Under an LLP are you allowed to still make claims in full for any taxes then if you use the vehicle personally? Thank you for the response.
sorry to be a pain, but I am thinking of starting a small car lease company so reclaiming vat is ok, but how does it work if you buy a car from a dealer and it is used and they are using the margin scheme, there I am lost 100%. Do they still give you an invoice with full VAT so you can deduct it?
Hi Gary , no problem. Using the margin scheme means the seller will charge VAT on the gross margin - you should be issued an invoice showing and vat charged
@@IHateNumbers thank you very much. The problem is I dont get all the vat I would get if they did not use the margin method, so when I sell the cars on I have to pass that VAT on and I effectively have to charge my customers higher rates than I would if I could reclaim 20% of the car cost to me. IE vat Q car for 100k gives me 20k ish of VAT to write off against other VAT, but 100k car on margin scheme gives me only maybe a few hundred pounds of VAT... if you see what I mean :(. So I need to only purchase VAT Q cars....
@@garymurraya a lot to unpick there but you have the option of using the margin scheme yourself for the sale of second hand cars www.gov.uk/guidance/using-the-vat-margin-scheme-for-second-hand-vehicles For the specifics & detailed advice you can book a power hour with me -
@@IHateNumbers I might do that, but Im leasing the cars to my customers, so I need to get as much VAT to deduct as possible from the purchase. thanks :)
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Good stuff, thanks for running through the different scenarios to claim back VAT
Appreciate the feedback
Great video, I’ve been told by another business owner however the rules are slightly different for an LLP? The vehicle can still be used personally under this structure?
Hi, appreciate the feedback. Re LLP, VAT treatment the same as for a 'normal' company or sole trader . When it comes to personal use then tax treatment, eg capital allowances is a for a sole trader
@@IHateNumbers Under an LLP are you allowed to still make claims in full for any taxes then if you use the vehicle personally? Thank you for the response.
What about claiming 50% vat on personal lease electric car??
Not quite about the question, is this as a sole trader, ltd ? Are you talking lease paid personally for a company ?
sorry to be a pain, but I am thinking of starting a small car lease company so reclaiming vat is ok, but how does it work if you buy a car from a dealer and it is used and they are using the margin scheme, there I am lost 100%. Do they still give you an invoice with full VAT so you can deduct it?
Hi Gary , no problem. Using the margin scheme means the seller will charge VAT on the gross margin - you should be issued an invoice showing and vat charged
@@IHateNumbers thank you very much. The problem is I dont get all the vat I would get if they did not use the margin method, so when I sell the cars on I have to pass that VAT on and I effectively have to charge my customers higher rates than I would if I could reclaim 20% of the car cost to me. IE vat Q car for 100k gives me 20k ish of VAT to write off against other VAT, but 100k car on margin scheme gives me only maybe a few hundred pounds of VAT... if you see what I mean :(.
So I need to only purchase VAT Q cars....
@@garymurraya a lot to unpick there but you have the option of using the margin scheme yourself for the sale of second hand cars www.gov.uk/guidance/using-the-vat-margin-scheme-for-second-hand-vehicles
For the specifics & detailed advice you can book a power hour with me -
@@IHateNumbers I might do that, but Im leasing the cars to my customers, so I need to get as much VAT to deduct as possible from the purchase. thanks :)