Expense claims mix

The taxpayer claimed input tax in relation to the purchase of a motor vehicle entertainment expenditure clothing expenditure and meals/trips expenditure. He claimed the vehicle was used solely for the purpose of business.

HMRC argued it was not sufficient for the appellant to purchase a vehicle for the purpose of business use; for VAT purposes the car must not be ‘available for private use’: there had to be a specific insurance or contractual restriction to prevent private use.

With regard to the claim in respect of the clothing and meals/trips the taxpayer had shown the expenditure was on goods or services used or to be used for the purposes of the business thus his appeal in relation to this was allowed.

The taxpayer’s appeal in respect of the vehicle and entertainment expenditure was dismissed.

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