VAT on parts

Hi all,

I was talking with one of my parts suppliers the other day about the rally, he was saying he thought we could pay no VAT or a reduced amount if the parts where to be used on the vehicle for the rally if you quote the charity number (event No). Do you know if their is any truth in this?

regards

Ross

Ross - This is a hugely technical area. In addition your vehicle is not owned by the charity.

My brief reading of the link below doesn't leave me to believe you would be eligible for '0%' VAT; however I'm not an expert and could be wrong. None of the Class of 2010 raised this as a possiblity.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000131&propertyType=document#P192_14384

I agree, I don't think you can, unless you are the registered charity.

I also looked into "booking" expenses against my VAT registered company, to try and gain a tax benefit. NOPE - taxman would consider it a Benefit in Kind.

I thought that would be the case. Didn't think the tax man would be that generous

Thanks

Ross

It was worth the Q.