UK Van Lease

Aug 21, 2018
Reaction score
United Kingdom

I wonder if anyone can give me any advice on the below situation?

A client has set up a limited company and employees her husband who has a van on lease and is used by the company. The company have been paying a lump sum to the husband to enable him to make the lease payments on the van and then inputting the payments in to Freeagent as if the company are paying the payments direct and claiming the VAT.

I have recently taken over their accounts and don't believe the VAT should be claimed back and don't think that the company can pay the husband the van payments either, unless he was renting the van to the company. Or am I totally wrong?

Any advice will be gratefully received.

Thanks, Kerry



VIP Member
Aug 26, 2011
Reaction score
AFAIK if the company wants to treat the lease payments in this way then they need to engage directly with the lease company. Even if the husband were to charge the company for the lease payments, he is not VAT registered (I'm guessing), so the company won't incur any VAT when paying him.

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

USA Lease Accounting (Operating Lease) 4
USA Leases 2
USA Lease Accounting 1
USA Converting Financing lease to operating lease 1
USA Leased equipment 5
USA Fixed / Leased Assets 1
UK Help with depreciation of a lease for a functional budget? 1
Lease Accounting in lessor books 2