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VAT status on the purchase of a motorhome for a company.
I act for a one-person limited company whose director has asked whether he can buy a motorhome for the company in order to claim input tax on the £40 000 outlay. His argument is that he would be able to stay overnight in the home when away on business saving the cost of a hotel. He would also hire it out on a commercial basis to generate revenue for the company.
I am a bit wary of his proposal: most of his business is in the area where he lives so long-distance travel that would necessitate hotel stays is limited. And he is so busy doing his consultancy work that I suspect he would not devote much effort to finding customers to hire the vehicle – it would be used mainly for family holidays I suspect.
What do readers think about my predicament?
Query 19 053– Priscilla.
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