Personalised number plates
Winner. In a recent VAT Tribunal case Mr Hooper incurred VAT of £256 in purchasing a car registration plate from the DVLA. The registration plate was “HO O2 PER”. Mr Hooper said it was to publicise his restaurant, which, despite being called the Windmill, was known locally as “Hooper’s”. This was quite strange as he was in the process of selling the business at the time. However, the tribunal believed Mr Hooper’s evidence and held that the expenditure was incurred for the purpose of the business and the appeal was allowed (19276 Colin Hooper).
Losers. This is one in a long line of cases in which business proprietors have purchased personalised number plates and tried to claim the VAT back, usually unsuccessfully. So well done Mr Hooper!
Tip. If you are going to be successful you will have to show that there is a genuine business purpose. The most obvious of these is advertising - so the personalised number plate should refer directly to the business name or activity, rather than your name as in the rather lucky case above. It should also be shown as an asset of the business rather than being owed personally.