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Sam, Accountant
Category: Tax
Satisfied Customers: 14166
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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do you include car/van insurances & tax as net amount in VAT

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do you include car/van insurances & tax as net amount in VAT returns
or is insurance of any kind not included (ie: like salaries etc)
thank you


Thanks for your question. I am Sam and I am one of the UK tax experts here on Just Answer.

The basic list of what to NOT include in the VAT return is

The payment of VAT to HM Revenue and Customs (HMRC)

Wages and salaries

Payments to HMRC for Tax, National Insurance contributions

Money drawn by you from the business or money paid into the business

Insurance claims received by you

Business rates and water rates

Loans repayments and loan advances

The cost of the MOT test

If you are a company you must exclude the dividends paid to shareholders

Road tax paid on vehicles

But Insurance can be claimed, but as no VAT is paid on Insurance, then the gross and net figure are the same. (with NIL VAT suffered)

Let me know if you require any additional information from my response



Customer: replied 3 years ago.

Hi - thank you that is very helpful.

I also pay another insurance - public liability, should this also to be included in the net purchases column of vat return - ie: as cost to company.

No vat is charged on this either.

my finance package has a code which excludes certain journal entries ie salaries/div's etc which is quite straight forward. just not sure about insurances.


Thanks for your further question

Public Liability is included on the VAT return, again the gross and net figure will be the same, as NIL input tax (and also its not included on the list I provided, which states what you should exclude)

Let me know if you have any follow up questions, but it would be appreciated if you could rate the level of service I have provided, as this ensures I am credited for my time.



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