You can claim 100% of the VAT paid on a car that is used as a genuine pool car.
A pool car has 2 main features:
- It is not allocated to any single employee and is available for the general use of company employees.
- It is kept overnight at the business premises and not the home addresses of employees.
In order to warrant your claim, make sure that the vehicle will not be utilised for private use and legal or physical restrictions are in place to prevent this. Minor private use is allowed as long as the car is purchased primarily for business use.
If you’re a business that contract hires or leases motor vehicles, you can claim 100% VAT on the monthly payments of your new car as long as you meet the above conditions.