HMRC and VAT

[Farmer]

Hello all,

I am considering either a new N1 5 seater or nearly new. I have read lots of material on VAT reclaim and spoken to my accountant.

The use is case is the vehicle would be 100% for farm use. If not on the farm then making local deliveries. There would always be proof of business use in the vehicle; fridge, meat, feed etc. We are remote and serve the local community with our produce.

My accountant is saying we can claim the VAT given 100% business use. Has anyone actually done this and what was your experience? BIK and pool care are not relevant given the farm/company activities (only drivers would be myself and I).

I know this subject has been done to death, however understanding how others got on with help us make the decision. We are 90% sure we will proceed with the purchase.

Many thanks.

 

[Cheshire cat]

Hi Farmer
Welcome to the forum.
Can't say for sure that a five seater N1 will work. I think it has to be the two seater commercial for the VAT reclaim. I'm sure your local Ineos dealer could put you right on the subject.

 

[Jeremy996]

If it is 100% business use, you should be fine. The final arbiter is your local Inspector of Taxes, but even they have to follow the law.

 

[lightning]

l looked into this back in 2022 when l was looking at a Grenadier for my business.

On HMRC website it says they base their classification on "what the vehicle was manufactured to do, rather than the use to which it is being put"

The same argument has gone on for years over the old model Defender five seat "Commercial" although it does have the advantage of over 1 tonne payload.

HMRC say the Grenadier 5-seat is a car, but l guess if you are a farmer and it's obviously in use as a farm vehicle it's likely the tax man will look upon it favourably if it ever gets checked.

But, if they dig their heels in you're going to get a stinker of a back tax bill.

 

[landmannnn]

Hello all,

I am considering either a new N1 5 seater or nearly new. I have read lots of material on VAT reclaim and spoken to my accountant.

The use is case is the vehicle would be 100% for farm use. If not on the farm then making local deliveries. There would always be proof of business use in the vehicle; fridge, meat, feed etc. We are remote and serve the local community with our produce.

My accountant is saying we can claim the VAT given 100% business use. Has anyone actually done this and what was your experience? BIK and pool care are not relevant given the farm/company activities (only drivers would be myself and I).

I know this subject has been done to death, however understanding how others got on with help us make the decision. We are 90% sure we will proceed with the purchase.

Many thanks.

You can claim back the Vat on any vehicle that is genuinely 100% business use, be it a Fiat Panda, Ineos Grenadier or a Rolls Royce.