What percentage of VAT can the company reclaim?
You can reclaim VAT for each car and any additional services. You can reclaim 10% for the lease or hire costs and 20% for other services and fees
Let's look at an example
The cost of the lease has 10% reclaimable VAT. The cost of maintain, home charger installation and The Electric Car Scheme fee are classed as other services and fees and therefore 20% VAT can be reclaimed.
How will I know how much to reclaim?
To make life easier, The Electric Car Scheme will provide breakdown of VAT reclaims every month in our invoice (as seen in the example above). This will usually be on page 2.
How do I reclaim VAT?
The Electric Car Scheme is not authorised to provide tax, legal, HR or accounting advice. We recommend you seek your own specialist tax, legal, HR or accounting advice. You may find these links have useful information: HMRC: Salary. Sacrifice and VAT and What’s the VAT treatment of a salary sacrifice?