Bentley does it

In an appeal featuring a motor car hire business and an input tax rebate Ravenfield Ltd claimed around £21 000 from HMRC for the purpose of a Bentley GT Continental car in the autumn of 2007.

HMRC accepted that the Bentley was a qualifying motor car initially supplied to Ravenfield for the purpose of their business which essentially provides cars for self-drive hire.

HMRC challenged whether the company’s ‘qualifying car’ was used solely for the ‘relevant purpose of self-drive hire’ and therefore used for business purposes. The reason for the department’s refusal to repay the incurred input tax was the inadequate evidence Ravenfield produced to support its contention.

When before the First-tier Tribunal Ravenfield also failed to supply relevant evidence including: hire contracts customers’ identification checks verification of insurance cover and deposit receipts for the mileage from the beginning and end...