Claim back as expense?

stevie_b

Quick question,

If i buy a vehicle in February, and decide in March to register a company and use this as a company vehicle, can i claim back any part of this as an expense?

Thanks!

The Apprentice

Ive heard something like this before..

Just as long as its for the business or perhaps that you are purchasing it for an up and coming business (sub 1 year i believe) u can claim the vat back on it..

Obviously im going to advise getting the 100% correct advise from an accountant.. let us know what the correct name of that is ^ but thats ideally what ure looking for.

smeharg

You would be able to claim mileage expenses for legitimate business travel - see form IT51 on the Revenue website.

You would not be able to claim for the cost of the car itself, unless you transfered it, ie sold it, to the company. The car would then be an asset of the company (not yours personally) and you would be liable to a benefit in kind charge based on the original market value of the car. You could also lose the car if the business failed with unpaid debts.

VAT is a different matter. VAT can only be reclaimed by the purchaser if he/she/it is VAT registered. There are also restrictions on the amount of VAT that can be claimed in respect of a car.

I think The Apprentice may be getting confused with the provision for pre-trading expenses, where expenses incurred up to 3 years prior to commencement of trading may be deductable for income or corporation tax purposes.

stevie_b

Very helpful, thanks

The Apprentice

Thanks for clearing that up smeharg .. Yes indeedy i might have got that wrong i hold my hands up :P