Input VAT is normally only available for deduction with respect to motor cars in very limited circumstances and subject to extremely tight criteria. One of the exceptions is where a car is used wholly for private hire (e.g. a taxi or a self-drive hire car).
Where a car is provided for self-drive hire, not only must any vehicle on which the input tax deduction is claimed be used solely for that purpose, it must also be demonstrated to have been so used.
In a recent case involving a claim for input tax deduction in respect of a Bentley, HM Revenue and Customs demanded to see evidence of the relevant hire contracts, the identification checks provided by customers, the mileage records relating to the individual hires of the vehicle and proof of insurance cover.
In the absence of sufficient supporting information, the claim was rejected.
01634 811118
Bentley VAT Claim Fails
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
Ask a free legal question
Complete this simple form if you
would like to ask us a
free legal question
What Our Clients Say
We would like to thank you for the superb work and attention to detail that has gone into our dispute with the council so far!
Our Architect put together a very professional document which was further enhanced and polished by your very professional input.
You are in fact unique in my personal experience of the legal profession in that you take your duty of care very seriously. It is obvious that the outcome concerns you greatly and your determination to win is much appreciated!
Thank you from us both.
Best Regards
Mr and Mrs X, Surrey