MartinD.
Member
Based in the UK. I’m toying with the idea of buying a Propain Ekano through my company (I’m a partner in an LLP). Simple, you would have thought?
Part One:
So, run through the configurator and the total comes out as £4200 including shipping but excluding VAT and Import duty. So far so good, a quick look on gov.uk comes up with a 6% import duty (Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars - UK Global Online Tariff - GOV.UK) plus I’ll need to pay the VAT, which I assume is on the ex-duty price.
My simple maths mind says that VAT plus Import duty equals 26% = a total landed price (less a customs handling charge) of £5300. I would love it if someone more in the know can confirm this is correct?
Part Two:
This is a company purchase. Trad VAT rules says if it won’t be exclusively used for the business then I can’t reclaim any of the VAT, but under the C2W scheme it seems the company can reclaim the full VAT. Also, the purchase price (less duty?) qualifies under the Annual Investment Allowance so can be written down entirely in the first year (i.e. 100% tax reclaim)
If this is true, the VAT reclaim is £840 and (at 40%) the AIA reclaim is £1,680 giving a total reclaim of £2,540 against a initial outlay of £5,300 so the bike would actually cost £2,760 net to me. I do understand that there will be a balancing charge should I dispose of the bike but I’m unlikely to do that in a timeframe that would materially matter.
Anyone had any experience of this or can shed light on the tax, duty, VAT malarky, Thanks in advance for any guidance or help.
Part One:
So, run through the configurator and the total comes out as £4200 including shipping but excluding VAT and Import duty. So far so good, a quick look on gov.uk comes up with a 6% import duty (Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars - UK Global Online Tariff - GOV.UK) plus I’ll need to pay the VAT, which I assume is on the ex-duty price.
My simple maths mind says that VAT plus Import duty equals 26% = a total landed price (less a customs handling charge) of £5300. I would love it if someone more in the know can confirm this is correct?
Part Two:
This is a company purchase. Trad VAT rules says if it won’t be exclusively used for the business then I can’t reclaim any of the VAT, but under the C2W scheme it seems the company can reclaim the full VAT. Also, the purchase price (less duty?) qualifies under the Annual Investment Allowance so can be written down entirely in the first year (i.e. 100% tax reclaim)
If this is true, the VAT reclaim is £840 and (at 40%) the AIA reclaim is £1,680 giving a total reclaim of £2,540 against a initial outlay of £5,300 so the bike would actually cost £2,760 net to me. I do understand that there will be a balancing charge should I dispose of the bike but I’m unlikely to do that in a timeframe that would materially matter.
Anyone had any experience of this or can shed light on the tax, duty, VAT malarky, Thanks in advance for any guidance or help.
