No VAT invoice from Blackhorse for lease payments

[GoHyperActive]

Hi All,

I got my MS on lease through my limited company via Blackhorse and just found out that Blackhorse do not provide VAT receipts for the monthly payments. I understand that a VAT invoice is needed for company records and also for adjusting against the Output VAT etc. Has anyone in a similar position explain how they have managed this. Thanks.

 

[Pd2717]

Is it PCP or contract hired? If PCP it doesn’t have VAT added.

If it’s contract hired you don’t get the advantage of the capital allowances like you do with pcp.

 

[GoHyperActive]

Is it PCP or contract hired? If PCP it doesn’t have VAT added.

If it’s contract hired you don’t get the advantage of the capital allowances like you do with pcp.

Thanks. It is PCP, but that is just a label. I made it clear that the lease will be with my company and the lease agreement is between Blackhorse and my company. The reasons for my query is not for capital allowance but for VAT deductions. As per HMRC, I can deduct 50% of the monthly VAT against my Output VAT. I am already doing this for another ICE car that is on lease and in this case I get a clear monthly VAT invoice. I also understand that if you are a VAT registered business then you must provide a VAT invoice for the goods and services you sell. What is not clear is the rules and obligations related to the monthly payments. I now plan to check with my accountants first and then check with HMRC directly if it is still not clear.

Link to HMRC page on VAT reclaims in case anyone is interested - Reclaiming VAT

 

[Pd2717]

I did the same PCP from Blackhorse to my LTD company.

As far as I’m aware my LTD company has purchased the car and it’s become an asset with a loan from Blackhorse secured against the car so there is no VAT payable on the loan repayments.

My account hasn’t raised an issue. It’s just like if you have a business loan from your bank, the repayments aren’t +VAT.

Haven’t Tesla provided you with an invoice? I had one in my Tesla account and that’s got VAT on it. You can’t reclaim that Vat unless it’s 100% business use only.

Do Blackhorse do lease/hire through Tesla?

 

[GoHyperActive]

I did the same PCP from Blackhorse to my LTD company.

As far as I’m aware my LTD company has purchased the car and it’s become an asset with a loan from Blackhorse secured against the car so there is no VAT payable on the loan repayments.

My account hasn’t raised an issue. It’s just like if you have a business loan from your bank, the repayments aren’t +VAT.

Haven’t Tesla provided you with an invoice? I had one in my Tesla account and that’s got VAT on it. You can’t reclaim that Vat unless it’s 100% business use only.

Do Blackhorse do lease/hire through Tesla?

Thanks again Pd2717. Yes, I got my Blackhorse lease through Tesla, the sales person at Tesla did the initial quotes on behalf of Blackhorse (online) and the actual agreement was signed with a Blackhorse person at the Tesla delivery centre. I do have a proper VAT invoice for the car from Tesla/Blackhorse for the whole value. I hadn't considered this as an outright purchase + loan, I think this could be the correct financial treatment for this transaction. I will also get this confirmed with my accountant.

Cheers

 

[MrDoor]

Thanks again Pd2717. Yes, I got my Blackhorse lease through Tesla, the sales person at Tesla did the initial quotes on behalf of Blackhorse (online) and the actual agreement was signed with a Blackhorse person at the Tesla delivery centre. I do have a proper VAT invoice for the car from Tesla/Blackhorse for the whole value. I hadn't considered this as an outright purchase + loan, I think this could be the correct financial treatment for this transaction. I will also get this confirmed with my accountant.

Cheers

Not financial advice and only opinion, a PCP purchase would mean that you can account for the whole car with VAT at the time of purchasing, leasing is different and there would be VAT charged, it can not be both however you can purchase through PCP and make monthly loan payments which don't have VAT as its a loan.

I would clarify what you have and if still unsure ask your accountant.

 

[GoHyperActive]

Not financial advice and only opinion, a PCP purchase would mean that you can account for the whole car with VAT at the time of purchasing, leasing is different and there would be VAT charged, it can not be both however you can purchase through PCP and make monthly loan payments which don't have VAT as its a loan.

I would clarify what you have and if still unsure ask your accountant.

Thanks MrDoor. Got the clarifications and I am now sorting it out with the accountants.