Leased car

[mflo]

Hello,
The business is VAT-registered, have a leased car which is used for business purposes. But is available for private use.

1. In this case can I reclaim back the input VAT on off-street parking, petrol and fleet managment for leased car?
2. In the situation where I can reclaim 50% how should be presented in VAT return? Half of the net value - box 7, half of the input VAT - box 4? What about the remaining net and VAT amount?

Thank you in advance.

[Trevor S]

Off-street parking and fleet management charges aren't subject to the 50% block - see section 5.4 of HMRC notice 700/64 : https://www.gov.uk/guidance/vat-on-motoring-expenses-notice-70064#input-tax-on-repairs-and-other-motoring-expenses.

Note that this refers to business motoring expenses. So you cannot recover any input VAT on off-street parking charges incurred on private journeys.

Also note that on-street parking is non-business (so no VAT charged), as the activity can only be done by local authorities operating under a "special legal regime" which is not applicable to private sector organisations.

For the VAT return, box 4 should only include recoverable VAT on expenditure, which is called input VAT. Box 7 refers to expenditure "excluding any VAT", not "excluding any input VAT ". So I believe that the full net should be recorded in box 7, recoverable VAT in box 4, and the irrecoverable 50% of VAT is not recorded anywhere on the return.