That said, struggling to get any information on VAT compliance.
Need to spec my commercial next month and was hoping to get confirmation that the five seater commercial had a load capacity of in excess of 1000kg to meet with VAT company van requirements....
I am hoping that the 2 seater will definitely be VAT qualifying.
I am not a VAT expert but from my own research I am pretty confident that the 1,000kg payload refers to double cabs only. Everyone I spoke to (not accountants) told me that a five seater with no windows in the back (e.g. 110 USW) would be VAT qualifying and a commercial for BIK purposes, but HMRC's advice clearly states that a truck with windows and seats behind the driver's row is unlikely to meet the criteria. Just because JLR or Ineos tell you it's a commercial, will not necessarily satisfy HMRC (they say) as to it's main purpose of carrying burden not people. There is no question in my mind that a 2 seat hard top is a commercial in all respects. Just my take on it, hope it helps.
When it comes to a commercial version of a car, its a minefield of this and that, a lot of it rests on the payload space and the capacity of it carry payload after any additional accessories have also been added (HMRC will take into account the added weight of winches, roll cages etc).
Given the Grenadier is rumoured to be at least 2600kg minimum in Station Wagon form I would think commercials are going to be restricted to the pickups.
For things like the Disc commercial your meant to have any rear seat belt holes etc welded or plugged with sheer bolts, if they think you can put seats or belts in a lot of the commercials (non crew cab) then you're likely to get a hefty BIK and VAT bill.
I am not a VAT expert but from my own research I am pretty confident that the 1,000kg payload refers to double cabs only. Everyone I spoke to (not accountants) told me that a five seater with no windows in the back (e.g. 110 USW) would be VAT qualifying and a commercial for BIK purposes, but HMRC's advice clearly states that a truck with windows and seats behind the driver's row is unlikely to meet the criteria. Just because JLR or Ineos tell you it's a commercial, will not necessarily satisfy HMRC (they say) as to it's main purpose of carrying burden not people. There is no question in my mind that a 2 seat hard top is a commercial in all respects. Just my take on it, hope it helps.
Landrover made a big deal when they launched the 110 Utility Station wagon to get around this very issue and the fact that it could still carry over 1000kg to meet the company van rules.
True, but being of a naturally cautious disposition, I decided against a USW as I didn't want the risk of a big VAT and BIK bill some years down the road, based on what I read including this and other pages https://www.gov.uk/hmrc-internal-manuals/e...l/eim23110
Given the Grenadier is rumoured to be at least 2600kg minimum in Station Wagon form I would think commercials are going to be restricted to the pickups.
Given the Grenadier is rumoured to be at least 2600kg minimum in Station Wagon form I would think commercials are going to be restricted to the pickups.
How could they respond based on rumored data ?
The rumours are from their documents, thats a lot of risk to do a buy on for a company
I've got a 2012 110 USW and it clearly lists the vehicle on the V5 as a Light Commercial Vehicle! So, I don't see how there would any wriggle room for HMRC regards VAT. In fact just after I bought the vehicle I had a spot check inspection from HMRC and a very forensic VAT inspector saw the vehicle parked on the drive and didn't find anything wrong with the latest VAT return where the VAT for the vehicle had been reclaimed.
I think the issue with Defenders generally is that a lot of them were sold as VAT qualifying as agricultural vehicles, whether they were station wagons with windows and rear seats or hardtops with no windows and rear seats. That meant the VAT rules for what makes a vehicle a van/commercial vehicle were confused. When Land Rover introduced the USW that clearly added another vehicle along side the hardtop that a company that is VAT registered could claim back in full the VAT on the purchase price.
