Is VAT Applicable on Van Hire

VAT is an additional tax that is added to most goods and services. When it comes to hiring a van, is VAT included? And if so, why is it? Who does the VAT payment actually go to?

In this blog, we will answer the question ‘Is VAT applicable on van hire?’

North London Van & Truck Hire Ltd is here to provide solutions for you. With over 30 years of experience under our belts, our services are valued and recognised in North London and beyond. Our expertise is to help you find the right van, for the right job.

Our fleet includes small, medium and large vans, in addition to mini buses, automatic vans, electric vans and more! We also provide the ability to purchase vans.

What is VAT?

VAT stands for ‘Value Added Tax’. It is applied to the sale of a majority of goods and services in the UK at different rates. Examples of VAT-taxable supplies and items include…

  • Commissions
  • Selling assets
  • Loaning/hiring goods to somebody
  • Buying supplies for business use
  • Services or products that are sold

There are some items and services that are completely exempt from VAT. This means that it can not be added on as a charge at all. VAT exemptions are given to things that serve the public in a critical and beneficial manner. This includes…

  • Healthcare & medical service providers
  • Energy providers
  • Charity organisations
  • Fundraising events
  • Education goods and services
  • Finance, insurance and investment-related services.

And much more.

Is VAT good or bad?

This depends entirely on your understanding. Some believe VAT is a fair tax that can help to increase government revenue. Whether you earn millions or thousands, you will not be exempt from paying VAT on some items. Everybody pays the same VAT.

On the other hand, some believe although it is technically fair, it is an additional financial burden that can affect those already struggling to make ends meet. Alternatives included taxing those above a certain tax bracket.

Who collects VAT payments?

The business selling you the product or service with VAT collects the VAT. After this, they pay the relevant amount to HMRC when it is due. Ultimately, the government collects VAT payments. This is then allocated amongst the government, ideally, it is expected to be spent on critical functions that enable society to be progressive, cohesive and prosperous.

Is VAT applicable on van hire?

Is VAT applicable on van hire?

Yes. Van hiring companies can have VAT applicable to their prices because they are a service that hires/loans goods to customers.

With North London Van & Truck Hire Ltd, we do not hide any additional taxes for your hire. The price you see includes VAT, this allows you to know how much you are paying without having to worry about additional costs.

Can you claim back the VAT on a van hire?

Yes. It is possible to reclaim the VAT you paid on van hire, although this can only happen in specific circumstances, which are…

  • The vehicle falls within the boundaries of a commercial vehicle according to HMRC.
  • The vehicle is only used for business-related matters.
  • Your business is VAT-registered.

Outside of this, you can not claim the VAT back on a van you have hired.

What is the maximum amount of VAT that can be added?

20% is the maximum amount of VAT that can be added, though in some situations, depending on the service or product, it can either be 5% or nothing.

How to hire a van

How to hire a van

With North London Van & Truck Hire Ltd, our hiring process is incredibly efficient and simple. Here is what you need to do.

  1. Head to our website
  2. Select your pick-up location, followed by return location, pick-up date, pick-up time, drop-off date, and drop-off time. Then press enter.
  3. Select the van you require. (Please note that availability will change as other people are making/have made bookings).
  4. After choosing the van, follow on to the next page, where you can select any add-ons you may require.
  5. After selecting add-ons, follow on to the next page, where you need to enter personal details.
  6. If your details comply with our requirements, we will present a quote, which you can choose to pay, or try another service.
  7. If you are happy with this quote, we arrange a time for you to come to the showroom, view the van, and complete the rental process by verifying the required documentation.

Can I hire a minibus?

Yes, our fleet also includes minibuses, we currently have 3 minibus options available, they are…

  • The 9-seat minibus
  • The 9-seat minibus executive
  • The 12-seat minibus

Like our vans, our minibuses are 100% ULEZ compliant, and have a 150-mile (ca. 241 km) allowance. Maintained to a high standard, you can rest assured any journey in our fleet is as relaxed as it is efficient. You can find out more here.

Do you need to be a business to hire a van?

Not at all. Our van hiring services are open to businesses and individuals alike. As long as you provide all of the necessary information and payment, you will be able to hire a van with no issue.

How much is it to hire a van?

With North London Van & Truck Hire Ltd, the daily rental cost (24 hours) for hiring a van is between £64.90 & £129.00.  Please note that these prices are subject to change and are dependent on the size, type, and additional extras you choose for each van we can provide.

Along with providing discounts for long-term contracts, our rates include full breakdown cover and insurance. Our vehicles are highly maintained, and are 100% compliant with ULEZ regulations, meaning no additional costs, whilst being more environmentally friendly. 

When hiring our fleet, you also have the choice of add-ons depending on your needs, whilst also providing a daily allowance of 150 miles (241.4 kilometres).

Please note that the prices of other providers may vary and include various stipulations which can increase your payment. Please be sure to compare prices amongst service providers to find the appropriate van and hiring stipulations for you.

Are there any issues that prevent hiring a van?

If the following factors apply, there is a high likelihood they will not be able to hire a van from a van hiring service.

  • Being below the age of 21
  • Have reached a level of cognitive impairment due to old age.
  • People with certain physical impairments, unless there is a van that accommodates that impairment.
  • Those with a driving history that compromises their eligibility to drive a van.
  • Any potential customer who is rude or threatening to staff.
  • Anyone with a criminal history that compromises their eligibility to drive a hired van (e.g. vehicle theft).
  • Having no driving licence
  • Having an expired driving licence

The reason for this is due to the fact that these issues can cause a serious risk of injury or death to the driver, pedestrians, passengers and other road users, or are illegal/at risk of purposely damaging the van.

Hire a van today

Hire a van today

North London Van & Truck Hire Ltd has over 30 years of experience, which has allowed us to provide a varied fleet of vans suitable for a variety of needs. We encourage you to get in contact with us today to see how we can help you. Below, you can find our opening hours, address, and contact details.

In this blog, we hope to have provided all the answers you require when it comes to answering the question ‘Is VAT applicable on van hire?’’ While providing supplementary information to help you make an informed choice when it comes to van hire.

Opening Hours:

Mon – Fri: 07:30 am to 05:00 pm

Saturday: 7:30 am to 12:00 pm

Sunday: Closed

ADDRESS:

North London Van & Truck Hire Ltd,

1320 Mollison Avenue,

Brimsdown,

Enfield

EN3 7NJ

PHONE:

020 3031 1097

EMAIL:

info@nlvth.com