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if car is being used in business 100% before registration for VAT. will the input be claimable on registration.
For instance, Mr. A registered for VAT on 01-Jan-2018, he purchased a car and use it until Dec-31-2017 for business use only and paid VAT of 20 pound on 01-Aug-2017. this car was given to managing director on 01-Jan-2018. what amount will be rcoverable in VAT return of Mar-2018
0 ?
20 ?
or apportionment will be done?Not sure where you are getting this question from – but firstly if Mr A registers for VAT this is an unincorporated trade and Mr A is the owner – there is no Managing Director(!) they only exist when dealing with incorporated trades!
It is just about impossible for there to be NO private use of a car made available to one individual – going from home to work is NOT business use for example!
If however a car is purchased prior to VAT registration and in fact it does have 100% business use then you would deal with it like any other asset bought prior to registration but still owned at date of registration and output VAT would have to be charged on the gift if input VAT had been recovered in relation to the purchase
I would advise you concentrate on what needs to be known!
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