VATupdate

Share this post on

VAT Reclaim on Insured Car Repairs for VAT-Registered Sole Traders

  • The insurer did not pay the VAT on the repair because the policyholder was VAT-registered.
  • A sole trader can only reclaim input VAT if the vehicle is used for business purposes.
  • If the car is purely personal, the VAT cannot be reclaimed from HMRC.
  • If the car is used for both business and personal use, VAT may be reclaimable in full or in part, depending on business use.

Source: accountingweb.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



Sponsors:

Fiscal Solutions Bottom

Advertisements:

  • iopole
  • Zampa
  • Pincvision