Toyota Hilux and VAT.

[Penelope]

The sale of my house is near completion and I'm looking at getting a Hilux and will have around £15-16K plus part x on my Rav4 to purchase one

 

I have been looking on the interweb and seen that some are plus VAT and others not. What is the cut off or criteria for VAT please?

[Penelope]

Some ads have said no VAT. It will be a used vehicle I'll want, not new.

 

I would assume they are all plus vat but business users will get the Vat back so they like to see the base price before having to subtract the vat.

[Red-dot]

I believe if the used vehicle has a hardtop fitted it falls below the carrying capacity causing VAT to be un-enforceable but not many sellers know this.

[walshie]

It's quite easy.

 

If the previous owner was a business user who claimed the VAT back, he has to charge VAT when he sells it. If he was a private owner and didn't claim the VAT back he doesn't have to charge it.

[Penelope]

Thank you, makes perfect sense.

 

It's quite easy.

 

If the previous owner was a business user who claimed the VAT back, he has to charge VAT when he sells it. If he was a private owner and didn't claim the VAT back he doesn't have to charge it.

[Red-dot]

To take advantage of the HMRC tax rules for double-cab pick-ups, you need to choose a pick-up with a payload of at least one tonne. Thats the benchmark figure the HMRC has decreed any double-cab must meet in order to be classified as a Light Commercial Vehicle.

 

If you pick a pickup with a removable hardtop cover, make sure the weight of the top doesnt take your chosen trucks cargo capacity beneath the magic 1,000kgs, or the vehicle will be taxed as a regular company car. Two seat pick-ups, and other trucks and vans are classified as LCVs automatically, as theyre not thought to offer the same non-business benefits to their drivers.

[al4x]

Thank you, makes perfect sense.

 

The irritating thing is that Ones where the vat has been lost seem to be more expensive so equivalent vehicles could be one at 10k plus vat so 12 overall yet dealers knowing private individuals buy will price the equivalent at 11k or more as the buyer won't buy one with vat on top

[Newbie to this]

It's quite easy.

 

If the previous owner was a business user who claimed the VAT back, he has to charge VAT when he sells it. If he was a private owner and didn't claim the VAT back he doesn't have to charge it.

This, if the company selling it is VAT registered then they will have to charge VAT.

[scotslad]

It's quite easy.

 

If the previous owner was a business user who claimed the VAT back, he has to charge VAT when he sells it. If he was a private owner and didn't claim the VAT back he doesn't have to charge it.

 

Thats the correct answer.

 

Any company who buys anything VAT registered will claim the VAT back, so if a private indivdual or non VAT registered business then buy's it they have to pay VAT on top, but when they sell it the VAT is already paid so NO VAT no matter who they sell too. (same with any other tools equip u cpould buy quads, chainsaws, gennys, diggers etc)

 

I think it is fair enough if an individual/garage sells a No vat 4x4 at a higher price as the 1st owner will have paid the vat so should have recieved a higher trade in value.

 

It could be swings and roundabouts wether u get the right motor with or without vat as long as u mind to add it onto the cost, also remember the price of conopies/hardtops and any other extra a 2nd hand pick up might have

 

Think rd is talking about something different of company car rules?? The payload won't make any difference to buying/paying vat on a pick up for a non vat registered person

.

[Red-dot]

The rule on used double cab pickups are different. Basically if the used pickup has a payload of less than one tonne it is not classed as a commercial vehicle and does not attract VAT. This is why hardtops are fitted often after the vehicle was registered.

[walshie]

It might have been true once, but there is no pickup currently available where the payload would go under the 1 tonne threshold by fitting a hard top.

 

Canopies have no bearing on whether VAT is payable. If it's new, VAT is payable. If it's used and the VAT has been claimed back then it's payable next time it's sold.

 

Otherwise you could buy a truck, claim the VAT back, fit a cheap top then sell it without the VAT making a good few quid in the process. If HMRC fork out for the VAT, they want it back somewhere along the line. It doesn't just disappear.

 

I know this because I bought a Hilux last year and asked my accountant the ins and outs.

[Rupert]

If an individual buys a garage they pay VAT regardless. A registered individual may then reclaim it, but must charge it on the invoice when he sells,

If the individual is not registered for vat and buys from a garage they pay the vat regardless but cannot levy it on the resale.

 

Some adverts say no vat but its in there, they are just trying to appeal to a private buyer.

 

Are you buying from a dealer or a private sale?

[Red-dot]

^^^^ not true. My mate bought a L200 from our friend Arnold and paid zero VAT because it was zero rated as it had less than one ton carrying capacity due to it having a hard top fitted at the factory... Don't take my word for it but call HMRC.

[shoot and be safe]

When bought new, VAT will have been added to the sale price.

 

If person buying was VAT registered,then VAT will have been claimed back

You as the next purchaser will then be liable for the VAT on the purchase price.

 

If person buying was NOT VAT registered, they can't claim it back and VAT will then already be paid. That's where the "NO VAT" comes from as it has already been paid.

 

On a used vehicle, if the VAT has been paid, it is usually worth more (around 10%) as you don't have to pay an additional 20% on the asking price.

 

This is my take on it all and hope it helps.

Edited April 26, 2017 by shoot and be safe

[Dougy]

Last one I bought was vat free, Toyota employees do not usually get the 25% discount on commercial vehicles fister so best of luck there.

I am looking now at another Invincible that's vat free. No idea about hard tops, soft tops 2 seats 4 seats or anything else.

[walshie]

^^^^ not true. My mate bought a L200 from our friend Arnold and paid zero VAT because it was zero rated as it had less than one ton carrying capacity due to it having a hard top fitted at the factory... Don't take my word for it but call HMRC.

 

I'm not disputing what your mate told you but I think he got the wrong end of the stick somewhere. Fitting a canopy does not exempt any vehicle from VAT. All the hardtop manufacturers make sure their tops don't take the payload under the magic ton anyway as there are other tax benefits associated with this, but definitely not VAT.

 

I would love to see this legislation so I can eat my hat and apologize for being wrong, but I doubt it.

[Red-dot]

OK Walshie i will type slowly so you can get the jist of the rule....

A new doublecab pickup with a factory fit hardtop has a carrying capacity of less than one tonne but being new it of course is VAT qualifying bur when being offered for sale as used due to the reduced carrying capacity of less than one tonne it is not VAT qualifying. I am not saying our 100% honest motor traders wont charge VAT on these DC trucks but they shouldn't but then again they can like you always plead the didn't know this.

Now i have a nice fedora looking for a diner!! 👍👍👍

[johnnytheboy]

It's quite easy.

 

If the previous owner was a business user who claimed the VAT back, he has to charge VAT when he sells it. If he was a private owner and didn't claim the VAT back he doesn't have to charge it.

This is the correct answer!

 

However and given the above conversations this will screw your mind, if the dealer is selling a no vat qualifying hilux, they will have a profit margin on that hilux, the dealer will be vat registered so will they have to pay vat on the profit margin? 😂😂

[walshie]

OK Walshie i will type slowly so you can get the jist of the rule....

A new doublecab pickup with a factory fit hardtop has a carrying capacity of less than one tonne but being new it of course is VAT qualifying bur when being offered for sale as used due to the reduced carrying capacity of less than one tonne it is not VAT qualifying. I am not saying our 100% honest motor traders wont charge VAT on these DC trucks but they shouldn't but then again they can like you always plead the didn't know this.

Now i have a nice fedora looking for a diner!!

 

No need to type slowly or be so condescending. Just show me the relevant "rule" written by someone other than you.

[Red-dot]

I doubt if anyone "older than me" is on PW!

All i'm saying is that Double Cab pickups only qualify for chargeable VAT (light goods vehicle) when second hand IF their carrying capacity being one tonne or over. Most probably are but there are exceptions.

[johnnytheboy]

http://www.autoexpress.co.uk/vans/95748/double-cab-pick-up-truck-tax-benefits-explained

[walshie]

I obviously wrote that a bit fast for you as it says "other" not "older". I would just be interested to see this in black and white in it's original document form rather than someone's interpretation if it.

[shoot and be safe]

OK Walshie i will type slowly so you can get the jist of the rule....

A new doublecab pickup with a factory fit hardtop has a carrying capacity of less than one tonne but being new it of course is VAT qualifying bur when being offered for sale as used due to the reduced carrying capacity of less than one tonne it is not VAT qualifying. I am not saying our 100% honest motor traders wont charge VAT on these DC trucks but they shouldn't but then again they can like you always plead the didn't know this.

Now i have a nice fedora looking for a diner!! 👍👍👍

I have to disagree sorry, it doesn't matter if it is a pickup or a Mini, if the VAT has been claimed back by the original purchaser(being VAT registered),they are obliged to charge any new purchaser VAT on the sale price.

[Red-dot]

VAt is only chargeable on used Light Commercial vehicles...

 

 

To take advantage of the HMRC tax rules for double-cab pick-ups, you need to choose a pick-up with a payload of at least one tonne. Thats the benchmark figure the HMRC has decreed any double-cab must meet in order to be classified as a Light Commercial Vehicle.

 

If you pick a pickup with a removable hardtop cover, make sure the weight of the top doesnt take your chosen trucks cargo capacity beneath the magic 1,000kgs, or the vehicle will be taxed as a regular company car. Two seat pick-ups, and other trucks and vans are classified as LCVs automatically, as theyre not thought to offer the same non-business benefits to their drivers.

There can be NO VAT charged on a used company car.

Edited April 26, 2017 by Red-dot

[Delwint]

What payload the vehicle is, has abosolutely nothing to do with VAT. Doesn't matter if it's a mini Moke or a Scania truck.