Have you thought about hiring company cars for your employees and wondered how much VAT you could reclaim even if they are used privately? This will depend on which option you choose, hiring or leasing. Contract hire, or any other agreement that will not result in the purchase of the car at the end of the term will be deemed as a business expense. Hence as long as the car remains the property of the leaser, the company can recover 50% of the VAT charged on the hire of the car. However, any agreement which results in the purchase of the car, or ownership passing away from the leaser is deemed to be procuring goods for personal use. In this case the company cannot recover any of the VAT charged on the lease of the car.
For more immediate VAT support go to the VAT web page.
September
19
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VAT on Company Cars 
Choose Contract Hire and receive 50% of the VAT back.
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