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How do u treat : the cost of motor car of £400 used for both private at 40% and business use with scale charge of £208.
If VAT is charged on the purchase of a car that has some private use then this is non deductible input VAT. If you are looking at the cost of private fuel paid for by the business then it will be able to recover ALL the input tax but will then be required to account for the output tax based on the fuel scale charge.
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