Van finance lease and VAT question....
Discussion
Afternoon all.
I'm after some advice on a confusing situation regarding selling my van which is currently on finance lease with Ford Lease/ALD Automotive.
I'm a non-VAT registered sole trader and was at the time of initiating the lease. The time has come for me to end the lease and to do this I must sell the van to a LTD company.
I've agreed a sale and a figure without VAT. Ford have sent me the paperwork, which I will then send back to them, they issue an invoice to the new buyer and once the money has been received, they will send the difference between the sale price and the agreed settlement fee.
On this paperwork, it asks me for the agreed sale price including VAT, with no option for a non-VAT price.
What figure do I put here? Am I selling it on their behalf and need to charge VAT? Do I put the non-VAT price? Am I going to lose 20%?
If it makes any difference, they've given me settlement figures including and excluding VAT.
I'm after some advice on a confusing situation regarding selling my van which is currently on finance lease with Ford Lease/ALD Automotive.
I'm a non-VAT registered sole trader and was at the time of initiating the lease. The time has come for me to end the lease and to do this I must sell the van to a LTD company.
I've agreed a sale and a figure without VAT. Ford have sent me the paperwork, which I will then send back to them, they issue an invoice to the new buyer and once the money has been received, they will send the difference between the sale price and the agreed settlement fee.
On this paperwork, it asks me for the agreed sale price including VAT, with no option for a non-VAT price.
What figure do I put here? Am I selling it on their behalf and need to charge VAT? Do I put the non-VAT price? Am I going to lose 20%?
If it makes any difference, they've given me settlement figures including and excluding VAT.
Rufus Stone said:
The sale price will be subject to VAT.
You need to ask the buyer if they are VAT registered, if they are it won't make any overall difference to them. If they aren't you may need to renegotiate the price!
Agreed, except it may make a difference depending on the tax status of their sales if they are registered. You need to ask the buyer if they are VAT registered, if they are it won't make any overall difference to them. If they aren't you may need to renegotiate the price!
Rufus Stone said:
The sale price will be subject to VAT.
You need to ask the buyer if they are VAT registered, if they are it won't make any overall difference to them. If they aren't you may need to renegotiate the price!
Buyer is VAT registered and I made clear it wasn't including VAT. They seem happy to pay +VAT as ultimately it makes no difference to them.You need to ask the buyer if they are VAT registered, if they are it won't make any overall difference to them. If they aren't you may need to renegotiate the price!
So I'm to fill in the paperwork to Ford with my initial asking price +VAT?
Just gone through the paperwork again. There is a statement on top of the page which says "I will be selling my vehicle as detailed above on behalf of Ford Lease to a third party company or other corporate entity that is registered at Companies House."
For clarity, a sale was agreed at £14k with no VAT before I received this paperwork. Do I need to put the sale price at £15800?
For clarity, a sale was agreed at £14k with no VAT before I received this paperwork. Do I need to put the sale price at £15800?
Rickyy said:
Just gone through the paperwork again. There is a statement on top of the page which says "I will be selling my vehicle as detailed above on behalf of Ford Lease to a third party company or other corporate entity that is registered at Companies House."
For clarity, a sale was agreed at £14k with no VAT before I received this paperwork. Do I need to put the sale price at £15800?
£16.8k For clarity, a sale was agreed at £14k with no VAT before I received this paperwork. Do I need to put the sale price at £15800?
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