LUKBENPHI

LUKBENPHI

Well-Known Member
Hi Every

Bit of a query regarding one of the only 2 certainties in life

Can someone please explain how VAT can be applied to a used Landy? surely if it's used VAT has already been paid to HMRC?

More often than not I'm seeing adverts with the dreaded +VAT in the small print which pushes the landy beyond my budget, is it the tax man legally getting his mits on the money or are traders just pulling a fast one to bump up the price?

Thanks in advance

Phil
 
when they have bought it for business use they have claimed the vat back, so when you buy it you have to pay for the vat of the sale, if you are a business you can claim it back.

if they are selling it privately then theres no need to pay vat
 
These are the three scenarios I can think of:
Private selling to private buyer: No VAT, its already been paid, plus you only pay VAT if you're a registered business with more than 75k turnover.

Dealer selling a previously commercial vehicle (VAT never paid on it) to private buyer: VAT payable in full (20%)

Dealer selling a previously private vehicle to private buyer: VAT payable on the profit (margin scheme, http://www.hmrc.gov.uk/vat/start/schemes/margin.htm)

The adverts I've seen that are +VAT tend to be for commercial-looking landys, with signage, or pickups, or some hard-tops. Some landys are registered as Vans, these tend to be commercial ones. I've seen the same dealer having some models as +vat and some all-inclusive - the +VAT ones are the previously-commercial ones.


Of course, if hes reselling a previously private vehicle and charging full VAT then I guess hes pulling a fast one yep, but if he gives you a VAT receipt for this then I guess it would be fraud.
 
Also worth mentioning that (if my understanding is correct) you need a business van insurance policy if you get one that is registered as a van. You can't use a normal private policy unless you strictly only use it for social, domestic and pleasure (NOT commuting! I was surprised at this. So if you're a teacher and go to work in your van-landy, you need a business insurance policy)

If I'm wrong on this I hope somebody will correct me, because I've been discarding many landy adverts that are registered as commercial vehicles.
 
Used to be the case when i first started running vans that many companys wouldnt touch you for commuting

Now its much more relaxed and i can insure sdp and c for reasonable money

How ever when i compare the cost of insuring my van to the cost of the blingo - same thing except for blingo has windows and side doors.... The vans still twice the price .....
 
you can get policies on commercial vehicles that are used purely for personal use. However, the difference in cost I found is absolutely minimal.
 
lots of council and cop defenders go for sale and they have vat added to the price, have seen lots of them with very low mileage and very nice in apperance , almost new looking
 
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NDA have a bunch of 110's and 130's that have covered less than 10,000 thatll be going cheap.

Saying that they are completed trashed! but still cheap lol
 
There's vat to pay of the person selling the landy is vat registered. If they aren't vat registered they carnt charge vat.

My insurance asked if it was a van, I side it's a hard top, they said it was a van, my reply was it might be but its not my a car to me and n off roader, I have a transit which is a van for buissness use
 
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