Hi - is there anyone going to be putting up for sale the above with adaptive height & importantly with no vat, it’s going to be a business purchase.
If so I may well be interested.
If so I may well be interested.
For Sale Wanted GS1300 for sale - with no VAT?
- Thread starter keithquad
- Start date
Yes I'm selling ( trading it in) R1300GS TE adaptive ride height, adaptive cruise, led riding lights x2. heated seats x2 , rider assistance ( flashes in the mirrors) gear change pro. electric screen.Crash bars. and usual TE spec. £15500. White
I'm pushing 80 and it's to big for me.
Stuart
I'm pushing 80 and it's to big for me.
Stuart
Are you still looking ?
If so, send me a PM
Hi - yea may well be interested.
What have you got?
Thank you
What have you got?
Thank you
Can you send me pictures plse?
I bought bikes through my business and reclaimed the VAT. A nearly new bike private sale would have been more expensive than a brand new bike from a dealer on which I could reclaim the VAT.
I suspect his post may well have been code and aimed at dealers planning to offload new stock at a knock down price.
Otherwise, I’m baffled too.
This wouldn't be a private sale, it's a business transaction. The fact the bike is now second hand rather than new is irrelevant as is the fact this would likely be just two people meeting up at the sellers house just like a private sale. At this point we're just into a typical VAT levied business transaction. The seller who would have brought the bike through their own VAT registered company and claimed it back from HMRC are now liable for the VAT when the vehicle is sold, so obviously they are going to pass that cost on. The buyer can claim this back if the vehicle is a company expense purchased through their VAT registered company if the seller provides a VAT receipt. What the OP is looking for is a seller who purchased the bike via a VAT registered company and can therefore provide a VAT receipt upon sale. A private seller obvously cannot provide a VAT receipt because they are not VAT registered. Simples.
It would have been easier to understand if the OP had just asked for a VAT qualifying vehicle.
Understood…. So quite a limited purchasing market outside the dealer network…. Just peeps that bought through their company.
So the OP still pays the VAT but reclaims it as a business purchase by a VAT reg company. I’m not sure the OP understands this.
When I buy vans for conversion to campers I generally have to pay the VAT because the previous owner had reclaimed the VAT and needs to pay it back. If I reclaim the VAT when I sell the van it would have to be plus VAT. If I absorb the VAT the van becomes VAT free to the next owner
Niche but probably more common than you'd think due to motorcycles being classed as a capital expense unlike cars so they can also be written off against Corp Tax and become a depreciating asset within the business for lower VAT when they do sell, the longer you keep it the more tax efficient it becomes. There are a lot of sole director limited companies that do this. HMRC clearly state that the motorcycle must be used primarily for business use which excludes commuting to and from a permanent place of work otherwise it becomes a BIK that will be taxed at market value at the beneficiaries standard rate of tax every year.
So, what actually happens is business owner (employee) buys bike through company, goes off on many many jollies around Europe completely unrelated to their business. Claims the VAT back and writes off the value against their next CT bill but "forgets to declare" taxable private mileage on their P60. Bike also becomes a conveniently depreciating capital asset within the business. Now in theory a detailed tax enquiry would see a serious discrepency in verifiable business miles vs those showing on the bike but I would be amazed if any enquiry would ever go to that level of detail so...it happens.
As a LTD company sole director I've looked at this option myself in the past but decided it really isn't worth the hassle unless there is a genuine business requirement for the bike (there rarely is). Like everything to do with tax beyond PAYE and VAT, it's about deciding how far above the HMRC parapet you want to stick your neck before risking getting your financial head blown off. Or in the case of the filthy rich, before you decide to go into negotiations with them in regards to how much you're willing to pay.
Agree that perhaps the OP just used poor wording or doesn't understand VAT. Let's assume the former.
In your situation I know we're just playing with words here but it's the same as what perhaps tripped people up with the OP's wording. It hasn't become VAT free in the sense that you could quote it as a selling point to the private buyer because VAT liability was always your problem not theirs, it's just part of the price they pay (like any end user purchase). As you'll obvously know, you just need to take it into account when calculating your potential profit when buying the van. Since I assume you're always turning them around quickly you'll unfortunately never see the benefit of reduced VAT on the sale of an annually depreciated asset. Which is valid since you've realised no ongoing business value from the asset unlike for example any significant capital expenses such as perhaps the vehicle ramp in your workshop or everyday tools you use to complete the conversion.
One of my farmer mates buys at least one (often two) brand new bikes a year, reclaims the VAT and sells them on privately after a few years when they have been fully depreciated on his books. He has been doing this for years and it's never been questioned.
Anyway , he's gone absent
As indicated, as Mille Ryder indicates this is the benefit of purchasing through your business, should you be able to do so.
So you can potentially find people who are selling their vehicles where they have business purchases.
I really do love these pages where people make gross assumptions!
Did you find anyone selling their vehicle?
Not as yet - a number of dealers offered their new ‘enticements’, but no independent sellers.
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