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Recovering VAT charged on repairs to a car

Question asked by Alan Bennett 1 month ago

I have a question regarding this ruling:

5.1 Recovering VAT charged on repairs and maintenance If you use a vehicle for business purposes, you can reclaim the VAT you were charged on repairs and maintenance as input tax as long as the business paid for the work. It does not matter if the vehicle is used for private motoring or if you have chosen not to reclaim VAT on road fuel.


If I pay for a service with my business account ( in order to claim the VAT back) how would I show this in clearbooks? It obviously isn't a business expense to service your car so not sure how to explain it. I'm a sole trader and do about 5000 mles a year for work.

5 Replies

Hi Alan,

I would suggest speaking to an accountant in that case. I do have some ideas on how to record this, but I don't want to provide you with incorrect advice as I am not absolutely certain of your circumstances.

All the best,

Mohamed.

Hi Alan,

For this you can use whichever account code you would like (perhaps an expense account), but to reclaim VAT you will have to select a VAT rate on a purchase.

All the best,

Mohamed.

Hi Mohamed,

If I assign it as an expense then doesn't that reduce my taxable income? I don't think I can do that as I'm already claiming 45p per mile for travel and that is supposed to include things like maintenance.

Hi Alan,

I would suggest speaking to an accountant in that case. I do have some ideas on how to record this, but I don't want to provide you with incorrect advice as I am not absolutely certain of your circumstances.

All the best,

Mohamed.

I would be happy to hear your ideas on this Mohamed - please do add a disclaimer if you like :-)

I'm presuming though I just pick the drawings account?

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