Part V7 Tax planning | Commentary

V7.451 Travel costs

Part V7 Tax planning | Commentary

V7.451 Travel costs

So far in this section, it has been assumed that the method of transport used is by a motor vehicle – looking at the VAT implications of motoring expenses. However, now we will consider the input tax treatment of travel by other means of transport.

Air travel, rail and bus

Any form of public transport that carries at least ten passengers is usually zero-rated for VAT purposes. Therefore, a business will never be able to reclaim any input tax on train fares, for example, as no input tax will have been incurred.

Taxi fares

As a taxi holds

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