Changing from company Commercial to Car

[sinbadsailor]

I have had a commercial 4x4 as company vehicle for the past 2 years. Looking to exit from current agreement and purchase a car as company vehicle.

Is the purchase process the same, i.e reclaim VAT on purchase price and pay off lump some to lender.

I understand that my BIK willl increase etc based on value and mileage etc, I am just unsure of the VAT reclaim part of it all

Thanks

 

[Graham_07]

VAT is not claimable on cars.

 

[sinbadsailor]

Oh...lovely! That changes things a bit then. Thanks.

 

[Henrieta]

I don't think this is going to help you much but in certain restricted cases you are allowed to reclaim an element of VAT on a company car.

See attached link, this was introduced in Finance Act (No 2) 2008

http://www.revenue.ie/en/tax/vat/leaflets/vat-deduction-on-certain-cars.pdf

 

[widebody]

Are you currently applying BIK on a 4x4 commercial? I've yet to meet someone who is, given the requirement isn't there if other people can use the vehicle.

 

[sinbadsailor]

Thanks. That might be of benefit as some of the models I have looked at are small diesel engined hatchbacks that fall into the co2 bands mentioned and I do quite a lot of business mileage during the week.