VAT recovery on cars

If you are a taxi driver, car hire business or driving school, or buying a car for resale you can claim back the VAT (if VAT registered and making taxable supplies). But what if the car is a pool car with no private use?

Two hoops have to be jumped through;

• The intention should be to use the vehicle wholly for business purposes
• It should not be available for private use

These hoops are hard to get through but three recent VAT cases at the first tribunal have been won two to one by the taxpayer.

So all is not lost but expect a challenge!