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VAT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › VAT

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by AvatarTax Tutor.
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  • August 1, 2015 at 4:42 am #263886
    Avatartosinlawani
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    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.

    August 1, 2015 at 8:52 am #264128
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    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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