After a bit of advice please? We have purchased a second hand company van on finance, it is used solely for business use. Am I able to reclaim the VAT on this as I haven't physically paid the VAT as its on finance?
Thanks
Roxanne
-- Edited by dgts2012 on Thursday 20th of November 2014 01:32:21 PM
check whether what you have is an HP agreement or a finance lease
If HP which seems the more likely then the VAT should be accounted for at inception. The deposit will be for at least all of the VAT.
If a finance lease then the VAT will be accounted for monthly / quarterly.
In order to reclaim anything of course you must have a valid VAT receipt for the purchase showing the VAT charged seperately.
If a lease agreement then the agreement must show the monthly breakdown.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
At a previous job I did, when I first started out, they would buy vans on HP. The deposit would always be for the entirety of the VAT element, plus about £500. We would then claim the whole of the VAT on the van at that time, and the monthly payments after would have no VAT element as it was already claimed. If it is a lease though, where you don't own the van at the end of it, the monthly payments will be 'plus VAT', but the initial deposit is normally a similar figure to the regular monthly payments anyway.
