Could you not claim VAT back if you worked as an UBER or Lyft driver as a VAT registered LTD company?You can't claim the VAT back unless you're a private hire business or a small number of other trades.
Edited to say the above was meant to suggest that your idea won't work unless you really are going to set up a business. HMRC would more than likely question your first VAT return and the reclaim without any sales (or even with). Unless they can see you have a legitimate trade (insurance, website etc etc) then they would suggest you've acted fraudulently, best case fine you up to 100% of the VAT you would have saved, through to worst case of putting you in prison.
Possibly, but if you register for VAT you would need to pay HMRC 20% VAT out of your fares, so probably not worth doing. Also you have to charge VAT when you sell car. Probably not worth it for lowly Uber rates.Could you not claim VAT back if you worked as an UBER or Lyft driver as a VAT registered LTD company?
There’s nothing fraudulent in setting up a special purpose vehicle to own your Tesla.You can't claim the VAT back unless you're a private hire business or a small number of other trades.
Edited to say the above was meant to suggest that your idea won't work unless you really are going to set up a business. HMRC would more than likely question your first VAT return and the reclaim without any sales (or even with). Unless they can see you have a legitimate trade (insurance, website etc etc) then they would suggest you've acted fraudulently, best case fine you up to 100% of the VAT you would have saved, through to worst case of putting you in prison.
Interesting thread. We already run a business as a partnership and are starting to look at converting to Ltd to effectively avoid tax on the entire capital and running costs of the car. Will probably need to discuss with the accountant, but just mulling it over for now.There’s nothing fraudulent in setting up a special purpose vehicle to own your Tesla.
What HMRC rule are you thinking of?
To claim the VAT on a motor car, you must have a relevant trade. Otherwise it'd be fraudulent to claim the VAT back.There’s nothing fraudulent in setting up a special purpose vehicle to own your Tesla.
What HMRC rule are you thinking of?
There’s probably not any benefit unless you can receive untaxed income (that would normally be subject to income tax) through the company.Interesting thread. We already run a business as a partnership and are starting to look at converting to Ltd to effectively avoid tax on the entire capital and running costs of the car. Will probably need to discuss with the accountant, but just mulling it over for now.
The VAT rules are clear, but we are talking about BIK here.To claim the VAT on a motor car, you must have a relevant trade. Otherwise it'd be fraudulent to claim the VAT back.
An SPV is a type of business set up for a specific purpose, but isn't really relevant to the issue of a motor car and VAT.
I'd argue this thread is about the VAT...The VAT rules are clear, but we are talking about BIK here.
Only your accountant can answer that as it'll depend on your trade, income and a number of other variables. Essentially it's whether the saving of the electric car in a limited company is worthwhile over the saving of an electric car in a partnership PLUS other savings as a partnership.Interesting thread. We already run a business as a partnership and are starting to look at converting to Ltd to effectively avoid tax on the entire capital and running costs of the car. Will probably need to discuss with the accountant, but just mulling it over for now.
You can claim the VAT back in those circumstances whether Limited or not. But the point remains that claiming back VAT depends on the circumstances. Plus to claim the VAT back it must be mainly used for private hire.Could you not claim VAT back if you worked as an UBER or Lyft driver as a VAT registered LTD company?
There’s probably not any benefit unless you can receive untaxed income (that would normally be subject to income tax) through the company.
so the BIK isn’t something I can leverage and I bet millions are in a similar position
Well, this is Sole Trader, not a limited company.This suggest otherwise...![]()
How to offset losses against PAYE as a sole trader
If, while employed and paying tax, I also set up as a sole trader, can I offset any trading losses against the PAYE I pay through my self-assessment?smallbusiness.co.uk
Yes, you can do this.I was reading that an employer can set up to be able to do this through salary sacrifice
like cycle to work scheme or childcare vouchers
anyone seen any info?
JJ
Well, the BIK tax for EVs is a form of tax relief. For that you need taxable income.I don’t understand
I work for a massive company
move only ever used cycle to work scheme
JJ