Ron Burgundy
Registered User
- Messages
- 752
If you paid for it in one lump sum then you calim the VAT back that way but if you are paying for it HP monthly then you have no choice but to claim it bi monthly.
You can only reclaim VAT in the period in which you pay it.
Sorry.wrong, with hire purchase you can claim all the vat back in one lump sum, if a lease you claim bi monthly.
also, reclaim vat depends on invoice date, and not on payment date.
It's one in the same I think. There are some differences with ownership on paper etc., but with HP, if you want to claim the VAT back in one lump sum, you have to pay it yourself in one lump sum at the beginning. Your financial institution will only pay up for the ex-vat price. So the only advantage is that it reduces your monthly payments (i.e. they will be ex-vat payments per month).
If you have the cash flow to pay the VAT and you don't fancy having to wait 2/3 months to claim it back then go for HP. If you don't want to fork
out a lump sum for the VAT up front, then go for lease.
Is this definitely correct? I don't mean to question your knowledge, it's just that I was told only last week by my financial adviser in my bank that if I wanted to claim the VAT back in one lump sum I would have to pay it myself first.this is not correct, you do not need to the the lump sum up front.
Perhaps it is considered that the finance house has paid it on your behalf.how could I claim back VAT I had never paid in the first place?
Perhaps? But, if they put up the full cost (with VAT) for the vehicle, and then I claim the VAT back in a lump sum, my repayments to the bank will be ex-vat, will they not? So will they not be out of pocket for the VAT they paid?Perhaps it is considered that the finance house has paid it on your behalf.
Is this definitely correct? I don't mean to question your knowledge, it's just that I was told only last week by my financial adviser in my bank that if I wanted to claim the VAT back in one lump sum I would have to pay it myself first.
I assumed this was correct. It seems reasonable, as how could I claim back VAT I had never paid in the first place?
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