Claim back VAT on cars

If you want to claim back the VAT when you purchase a new car make sure the car is only used for business purposes and no private journeys are made in it.

The most common way to do this is to have the car as a pool car for use by various employees. Here’s some of the areas that the Taxman asks about pool cars:

- private use must be banned (include in employment contract ideally);
- keep a log of actual use / reasons for the journey;
- the car must normally be kept at the business premises overnight;
- it should be insured for business use only;
- employees must have another car available for their private journeys.

You don’t have to have all of the above in place but the more you do have the more likely the Taxman will allow you to claim back the VAT.