Readers’ forum: VAT

I act for a wealthy client who has purchased a motorbike in his company which requires a lot of renovation work spent on it including VAT. The intention is that it will be raced in some high-profile events each year including the Isle of Man TT. The director is very passionate about motorbikes and will ride it in some of the races – for others the company will pay a fee to a professional rider.

The company name and logo will be advertised on both the motorbike and driver’s uniform and there will be further advertising in say event programmes. The director has also devoted a page about the progress of the bike renovation with photos on the company website. An intention is that suppliers and customers will be invited to racing events and be entertained giving them the...