leasing a van with poor credit rating

[sandhu40]

I need to lease a van but have poor credit rating. If my sister leases the van and lets me have it, can I count this as business expenses and offset?

I am also going to become VAT registered so will be claiming that back for the van leasing.

The van lease contract will be in my sisters name but they will be told about the arrangement and only I will be on the insurance policy.

Will this be ok do you think?

Thanks for any help.

 

[noseall]

[quote="sandhu40";p="898135"

I need to lease a van but have poor credit rating. If my sister leases the van and lets me have it, can I count this as business expenses and offset?

i would imagine that if you make payments to your sister regards vehicle expenses, then i guess it will be deductible.

I am also going to become VAT registered so will be claiming that back for the van leasing.The van lease contract will be in my sisters name but they will be told about the arrangement and only I will be on the insurance policy.Will this be ok do you think?

i don't think this will work unless your sis' is vat reg'd

[/quote]

 

[Shytalkz]

i don't think this will work unless your sis' is vat reg'd

Correct: if she's not VAT registered, then she can't charge VAT as an element of the cost that she charges you, she just bills you a lump sum, which includes the VAT and lease charges as one.

As you then haven't been charged VAT, per se, then you can't claim it back.

 

[sandhu40]

so its a simple matter of my sister getting VAT registered then? Wont be a problem will it?

 

[2scoops0406]

so its a simple matter of my sister getting VAT registered then? Wont be a problem will it?

Not if she's trading, no. But if she's an FTE (full time employee) then yes it won't be possible.

 

[D_Hailsham]

I need to lease a van but have poor credit rating. If my sister leases the van and lets me have it, can I count this as business expenses and offset?

The van lease contract will be in my sisters name but they will be told about the arrangement and only I will be on the insurance policy.

Make sure that you have something in writing from the leasing company and the Insurers to say that you are allowed to use the van for your business.

I am also going to become VAT registered so will be claiming that back for the van leasing.

Unless your sister sets up a business of her own and becomes VAT registered, you will not be able to reclaim the VAT part of the lease through your VAT account. But you should still be able to reclaim the whole cost (including the VAT) as a business expense.

If your turnover is not high enough to compel you to register for VAT, there is no point in doing so, unless the majority of your customers are VAT registered.

Make sure you have a written agreement with you sister that you will pay the leasing costs and get receipts from her each month to say you have paid. Preferably pay her by cheque.

 

[Bilioustrumpstaine]

For a definitive answer why not give the vatman a call before you embark on this venture.

Can your sister lease the van but ask for the payments to come from your bank and the vehicle to be registered in your companies name. She is only going as guarantor really.

 

[sandhu40]

... much appreciated.

To update, I am thinking of going with the following deal...

http://www.apexrental.co.uk/long_term_rental/vans/

Check out the second van down, LWB model.

Going for the 6 month option at £269+ VAT (I need more than 1000 miles per 28 days so went for the 2000 option). I can get that in my own name and all I pay up front is the monthly fees 7 days in advance, ie month by month. NO other fees such as servicing or maintenance. They give you a new van every 9,000 miles, so fingers crossed, there wont be anymore expenses on top.

Just need to find out if the van will be plylined.

AJ