Showing posts with label car. Show all posts
Showing posts with label car. Show all posts

Tuesday, July 24, 2012

VAT and Car Expenses

While owning a car in a company can be quite expensive for a director, there are instances where it makes sense to do so. The director will then be charged for a benefit in kind which depends on the CO2 consumption, benefit for both the use of the car and the corresponding fuel paid by the company.

The company will then be able to expense all related costs for the car. But it will not be able to recover all the VAT. If the car is purchased outright, then the VAT will not be recoverable if there is any private use. And if the car is leased only 50% of the purchase VAT can be recovered.