Amendments to VAT Scale Charges on Private Use of Demonstrator Vehicles
03/07/2009
H M Revenue and Customs have finally issued revised tables for calculating the VAT due on the private use of demonstrator vehicles. The new list price bandings now tie in with the bandings used for PAYE averaging agreements, which came into effect at 6 April this year and it is hoped that this harmonisation may simplify record keeping and calculations for dealers.
The new bandings and associated output VAT are as follows:
List price band VAT due on quarterly return
£0 - £8,999.99 15.28
£9,000 - £11,999.99 20.22
£12,000 - £16,999.99 27.67
£17,000 - £22,999.99 37.80
£23,000 - £34,999.99 56.31
£35,000 - £49,999.99 79.43
£50,000 - £64,999.99 103.69
£65,000 - £79,999.99 127.07
80,000 upwards Individual callculation based on actual cost prices
The new bandings take effect from 1 May 2009 and if your return period spans this date, you can choose to apportion your calculations for this quarter or only use the new rates from the first full VAT period starting after 30 April.
If you have already completed a return for a period crossing 1 May, you are not expected to revisit your calculations and can instead apply the new bandings from the beginning of the next return period.
Further tables will be issued later in the year to reflect the effect of the VAT rate change at 31 December 2009.
If you have any queries regarding how these rules apply to your business, please contact Michelle Malone on 0161 493 1930