Lease Car VAT

[richiekk]

Lease car purchases have a ‘lease’ portion where only 50% of the VAT can be claimed back with a ‘services’ portion where the full VAT can be claimed.

Is there any way of flagging these entries so that these anomalies are picked up for year-end accounts?

[QFMathew]

Hi @richiekk

I would either record them as separate lines with the correct VAT assigned to them (the easier way), or you can manually adjust these when it comes to submitting you return.

However, we do have other users and accountants (I’m not one) on the forums, so there may be a better workaround that someone uses and could share with you

[richiekk]

Thanks. The amount of VAT charged is correct when entering it. It is the amount that can be reclaimed that differs and this happens at year end.

As such I see no option but to leave this to the accountant at year end.

I am surprised that no-one else has raised this (unless I’m doing something wrong regarding lease car entries!)