Any accountants in?
Discussion
Hi, I'm trying to sort out a problem and was wondering if any of you clever lot had a solution.
My dad has a VAT registered building business and I work for him as a basic employee. We've found a pre-registered van for sale at a main dealers and we want to buy it. The original idea was to get the van on finance lease claim the VAT back and the full lease cost against tax.
The problem: my dad's business made a loss on paper last year so credit has been refused. We don't have the cash to buy the van outright but we both have good personal credit. I am happy to pay for the van whether it's bought in my name or his as it will essentially be for me. With the VAT back the van is very good value, with tax back it's incredibly good value. Is there any way I can buy it in my name and somehow get the VAT back through the company? Can it be bought in his name? (he's the director) and the VAT be claimed back?
My dad is planning to beg/borrow the money to buy it outright and I want to avoid this as I think our liquid cash could be better invested elsewhere, so I'm really trying to get it on finance. I'd appreciate any help with this as to be honest, it's above my head and I think he's either going to lose his deposit or sink all his cash into a van which would be nice but is not essential.
Thank you.
My dad has a VAT registered building business and I work for him as a basic employee. We've found a pre-registered van for sale at a main dealers and we want to buy it. The original idea was to get the van on finance lease claim the VAT back and the full lease cost against tax.
The problem: my dad's business made a loss on paper last year so credit has been refused. We don't have the cash to buy the van outright but we both have good personal credit. I am happy to pay for the van whether it's bought in my name or his as it will essentially be for me. With the VAT back the van is very good value, with tax back it's incredibly good value. Is there any way I can buy it in my name and somehow get the VAT back through the company? Can it be bought in his name? (he's the director) and the VAT be claimed back?
My dad is planning to beg/borrow the money to buy it outright and I want to avoid this as I think our liquid cash could be better invested elsewhere, so I'm really trying to get it on finance. I'd appreciate any help with this as to be honest, it's above my head and I think he's either going to lose his deposit or sink all his cash into a van which would be nice but is not essential.
Thank you.
inabox said:
The problem: my dad's business made a loss on paper last year so credit has been refused.
Them's the breaks when you "arrange" the figures to minimise the apparent profit, so minimise the tax...inabox said:
Is there any way I can buy it in my name and somehow get the VAT back through the company? Can it be bought in his name? (he's the director) and the VAT be claimed back?
No. The company would need to buy it for the company to reclaim the VAT on the company's purchase.Gassing Station | Car Buying | Top of Page | What's New | My Stuff