VAT Land Rover Defender

Question from reader :

If I purchase a Land Rover Defender for use in my  partnership business can I reclaim the VAT paid on the purchase? I  will use the Land Rover 75% for business and 25% for private  journeys.


You first need to check that the specific model  of Land Rover Defender is regarded as a commercial vehicle for VAT  purposes by HMRC. You can do this by ringing the VAT helpline on 0800  010 9000.  

If HMRC agrees the Defender is a commercial vehicle, you can reclaim  75% of the VAT paid on the purchase, on the basis that it will be used  for business purposes for 75% of its useful life. You should keep  accurate mileage records of all your business journeys so you have  evidence of the business use of the vehicle, in case HMRC ask you to  prove the business use percentage. If the percentage of business use  of the vehicle changes you may have to make an adjustment to your VAT  return.