scoobyranger

Is there any legal way (other than business route) of avoiding paying VAT on a brand new car?

Would commuting to a workplace be a legitimate way of using business use to skirt VAT?

Before I get attacked about paying tax, I'm not a big earner, I pay every other tax, receive no tax benefits etc. I just think that the tax on a new vehicle is extortionate (especially when you factor in road tax, fuel duty, tax on work done, tax on parts, tax on insurance etc etc.)

Besides, it'll probably be the only brand new car I'll ever have in my life.

PaulC72

Pre reg....a car purchased by dealers to usually hit sales levels for bonues form car companies they then sell them off at a reduced cost which could work out at being the price without the vat - it would be a new car with a discount.

Alternatively wait until a dealer is doing a VAT free offer I know the likes of Skoda do them from time to time.

pflowers

Commuting is private mileage so that's a non starter I'm afraid.

pflowers

They can't sell a new car 'vat free' you are still paying the vat, they just give you a discount equivalant to the vat, not quite the same.

PaulC72

I don't disagree but it's the nearest answer/solution to the OP's question I could come up with.

hodgy0_2

presumably a (VAT registered) business user pay VAT -it is simply that they can reclaim it - being VAT registered "en all"

or have I missed something

pflowers

A vat registered business can't reclaim the vat on a car only a commercial vehicle.

pflowers

Actually that's not correct, they can reclaim the vat if it can be proved the vehicle is 100% used for business purposes and is not available in any way for private use. This is very difficult to justify unless you are a taxi company, driving centre etc.

hodgy0_2

ah OK I have missed something then - DOH

the "no vat" deal is simply a sales marketing device for "business users" - makes sense