Big Joe and Dennis have wise words, Dennis’ may be sailing a bit close to the wind when you’re starting out like but each to their own, my advice would be to not take a finance lease as it sorts spreading the vat chunk but they take a percentage of the sale price when you come to sell it and also take a peppercorn rental for each year after the agreement ends which isn’t much but can be annoying.
Silver_Surfer:
and also take a peppercorn rental for each year after the agreement ends which isn’t much but can be annoying.
can you elaborate as thats not something i remember being in my setup and its coming to an end soon
chaversdad:
Silver_Surfer:
and also take a peppercorn rental for each year after the agreement ends which isn’t much but can be annoying.can you elaborate as thats not something i remember being in my setup and its coming to an end soon
Because of the TAX rules a Lease Agreement is a rental agreement and the truck cannot be sold to yourself at the end of the agreement it must be sold to a third party and the finance company can retain a portion of the sale value normally 5-15%.
The alternative to this is known as a Peppercorn Rent which is usually listed in your agreement how much this will be normally a Fixed payment to be made once a year possibly one months rental or maybe less.
Remember that if you Lease the truck it is never yours. 
limeyphil:
tell the supplier it’s for export. no messing about with vat, and things like that./quote]I doubt they will ask for any proof you are exporting it, shipping docs, export address, I mean they don’t have to account for VAT, they will just hand over a non VAT invoice just because you asked.
Sorry if this is obvious but there is a difference between ‘lease purchase’ and ‘lease hire’. I am not sure of the technicalities but I have had several vehicles on lease hire from MB and purchase has never been an option.
TDL102:
limeyphil:
tell the supplier it’s for export. no messing about with vat, and things like that./quote]I doubt they will ask for any proof you are exporting it, shipping docs, export address, I mean they don’t have to account for VAT, they will just hand over a non VAT invoice just because you asked.
If you don’t have the EX1 form that comes from the shipping agent (after the ship carrying the truck has left UK waters and heading for a non-EU country) to go with the ‘no VAT’ invoice, you’ll be paying the VAT out of the price you let in go for. (for inter EU countries you just need the other parties VAT reg number in his member state)
eg £20,000 no VAT because it’s for export outside the EU and no EX1 will mean the truck was sold for £20,000 inclusive of VAT, give us £3,333.33 of the 20K which included the VAT.
Shipping agents are not the most efficient of people at sending the paperwork out and It’s even harder If you don’t do the export yourself, so hard that we wouldn’t sell without the VAT if we didn’t export it ourselves. Most auctioneers give the buyer 30 days to return the EX1 and get the VAT back, after that, they have sent it in and the exporter then has to try and get it off HMRC themselves. We had a few last VAT check where we hadn’t got the export form even though we had the shipping docs and had a hell of a hard time. One had ended up being driven to Lithuania with a loaded trailer behind it and that was a right performance. They have tightened up on it because people were buying truck and saying they where sending them overseas, sending the money from abroad and then running them in this country and just trying to buy them without paying VAT.
I got out of that business about 4 yrs back, but that’s how it was being done then.
TDL102:
limeyphil:
tell the supplier it’s for export. no messing about with vat, and things like that./quote]I doubt they will ask for any proof you are exporting it, shipping docs, export address, I mean they don’t have to account for VAT, they will just hand over a non VAT invoice just because you asked.
To remove the element of doubt, my reply was based on sarcasm, the post above explains it all, no supplier with a VAT number is going to let you walk in and just take a vehicle with no VAT on the invoice just because you say you are exporting it.
We make the customer pay the VAT and credit it back once it is proved it has been exported, unless we are doing it ourselves.
The VAT inspector loves going straight to the “non Vatable” invoices and asking for the VAT back if there are no reliable documents, in fact, they still do if there is!
TDL102:
TDL102:
limeyphil:
tell the supplier it’s for export. no messing about with vat, and things like that./quote]I doubt they will ask for any proof you are exporting it, shipping docs, export address, I mean they don’t have to account for VAT, they will just hand over a non VAT invoice just because you asked.
To remove the element of doubt, my reply was based on sarcasm, the post above explains it all, no supplier with a VAT number is going to let you walk in and just take a vehicle with no VAT on the invoice just because you say you are exporting it.
We make the customer pay the VAT and credit it back once it is proved it has been exported, unless we are doing it ourselves.
The VAT inspector loves going straight to the “non Vatable” invoices and asking for the VAT back if there are no reliable documents, in fact, they still do if there is!
i’ve never done the 0% VAT export thing with a vehicle. it was a bit tongue in cheek, but it is possible.
i have however done many invoices 0% VAT for printing without any problems.
if it was for export it was zero rated, and there were a number of items which were excempt from VAT. the tax man never raised the issue.