question on vat scale charge

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October 26, 2016 at 10:36 pm #346197
Jean96
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Blessing is VAT registered
In the quarter to 31 March 2016 Blessing’s accounts include the total cost of fuel for her car,which she uses 20% for private purposes , of £1200(VAT inclusive).The relevant VAT scale charge for the car is £468
How much input VAT is reclaimable by Blessing after adjusting for any output tax due for the quarter ended 31 March 2016 in respect of the fuel for her car
answer
quarter ended 31 march 2016
output tax
fuel scale charge(468*1/6)=78
input tax fuel (1200*1/6)=(200) why is there no apportionement for private use??
October 29, 2016 at 11:43 am #346544
Tax Tutor
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See the OT course notes – input tax will be recovered in relation to private fuel but the input tax is then reduced by the fuel scale charge output tax. This is done instead of restricting the input tax to just the business use proportion!
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