Hire Cars & No Vat Wot! your kidding

[JonCris]

I truly can't imagine when the following would be of any use to anyone but you know what they say about knowledge, any knowledge.

 

Knowledge is POWER!

 

There are a number of hire companies which specliaze in short & long term hire, not HP, not Credit Hire but ordinary hire.

 

These companies purchase these cars & are allowed to reclaim the vat content of the sale price thereby making the cars much cheaper.

 

The Customs & Revenue collect their vat from the daily/weekly/monthly hire charges.

 

There are however some facts that those in dispute with such a company might like to know They are that very stringent conditions attached to that concession by the vatman & are that at no time must a the vehicle be used by a member of staff to say go home at night, to collect the office lunch from the local chippy, or for any purpose which can be deemed private or personal use.

 

In fact any vehicle not on hire is expected to be locked in a secure compound/premises at all times. So if you see hire staff using one of the fleet to do any of the above they could be in deep do do if the vatman found out

 

Oh & its why they change the cars at frequent intervals (12 months or less) As long as its in good nick in auction they often get more than they paid! If they don't they find a reason to bill the last customer. This explains the long delay before a bill is received

[adridude]

ok so in short? :-\ sorry

[JonCris]

Do you really need me to paint a picture. If they break the rules they lose. What more do you need

[adridude]

hmmz, just thought about it. They are paynig VAT on it via the PAYE. Dont forget that a company car is seen as a benefit and is taxed from your salary.

[JonCris]

I think there is a misunderstanding of what this thread is about!

 

Without wanting to stray ofcourse could I just mention that what is being paid to the hire company has no relation to the "benefit in kind" imposed by the taxman

 

Back on course It is about how some hire companies stitch the customer up long after hand back. By telling them of your new found knowledge they may think twice before trying it on.

 

As they say "all's fair in love & war" or better still "do unto others as they would do unto you, only you do it 1st"

[adridude]

another saying: war isnt about dieng for your country, its making the other bastard die for his

[JonCris]

Spot on Now your getting it.

 

They wanna play dirty why shouldn't we. At least our play will be lawful

[adridude]

indeed

[taff999]

sorry joncris im a bit dull. im looking at hireing a car and as im not a business user im having to pay extra to what a business user would, vat i think!

 

can you explain in black and white what your getting at here or would it be useless as im a private hirer?

[JonCris]

It would be useless to you as a private hirer. You will pay non refundable vat. the thread is about the fact that hire companies can buy their vehicles free of vat because the vatman gets his vat from the likes of you when you hire..

 

They only get the to do this provided the vehicle is only used for hire. If a member of staff uses a non vat car to go for the lunchtime goodies then they are in breach of the agreement with the vatman & should he find out all hell could break lose. If you read the whole of the thread you'll understand the reason for it