VAT reclaimable on company motorbike?

[Shipley]

My company is looking to purchase a 6 month old motorcyle as a company-provided vehicle for one of the directors.

The purchase will be from a mainstream dealer. Is the VAT element of this transaction re-claimaable?

Continuing the question, but moving to P11D and Class 1A NIC, do I assume that the Benefit in Kind is assessed on the full purchase price (ie irespective on any re-claimable VAT or not) at 20% of the price paid?

Thanks,
Shipley

[paultaylor@vatease.c]

There is no specific input VAT restriction on the purchase of a motorcycle. You must treat it as you would the purchase of any other asset, i.e. input VAT is claimable if, and to the extent that, there is business use.

You should restrict any input VAT claim by an appropriate ratio for private use (remembering commuting to the normal place of work is private use) or you must make a charge to the director for his private use.

Of course, this assumes that there is VAT on the purchase. If you are buying from a second hand dealer or a private individual there is a good chance that you will not be charged VAT in the first place.

Regards

Paul Taylor
http://www.vatease.co.uk/

[Shipley]

Cheers Paul.

Thanks very much.

Shipley