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25 02/11 VAT and cars:
Lease and Hire cars, what's happening?


Call us now on 023 8083 6900 ABDS Home

News - 25 February 2011

VAT and cars: Lease and Hire cars, what's happening?

Being able to reclaim 50% VAT on lease or hire cars was due to end at the start of the year, a concession that has been active for almost the entire 35 years of the existence of Value Added Tax legislation.

However, The European Commission (not everything they do is about the angle of the bend in a banana) who makes all VAT rules for European members has proposed an extension of this till 31st December 2013. Without this concession, you could still reclaim VAT but it would be in proportion to the amount of business use the vehicle has – a very time consuming and fiddly job.

Stuart Coleman, Manager of the Tax Department of ABDS says:

“Although the extension is for a limited period, it may well be extended again, but rest assured, as soon as we know you’ll get the news here first.”

If you need any help and advice on this or a similar matter don’t hesitate, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your financial planning and business advice.”

ABDS Chartered Certified Accountants of Southampton.

Tel: 023 8083 6900  E-mail: abds.marketing@netaccountants.net
ABDS Advice 25/02/11
 

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