Making Company car lease payments up front

[arby]

I'm toying with the idea of leasing an EV through my limited company as a company car due to the relatively low BIK and it being a way to take money out without paying the revised dividend tax rates. By choice I don't plan to work the entire calendar year which means it's possible that in some quarters I would not have any incoming VAT payments to offset 50% of the VAT on the lease payments.

Other than the obviously poor cash flow is there anything that prevents me from making 6 (or more) month's worth of lease payments in one month so that I can claim back as much VAT as possible? In the extreme could I pay all of the lease costs in one quarter?

[northernladuk]

What did your accountant advise?

[Lance]

What did your accountant advise?

his accountant is likely to tell him that as he's not a car hire company or a taxi then don't bother reclaiming VAT. That's what mine said.

[Alan @ BroomeAffinity]

his accountant is likely to tell him that as he's not a car hire company or a taxi then don't bother reclaiming VAT. That's what mine said.

He'd be wrong then. You can claim 50% of the VAT on contract hire / lease payments.

OP: you don't need income to offset. You just reclaim the VAT incurred on your return. £0 in the VAT payable box, £xx in the VAT reclaimable box, £0 - £x in the VAT due box.

[Lance]

He'd be wrong then.

Good job he's getting sacked in the next 2 weeks then.

[northernladuk]

Good job he's getting sacked in the next 2 weeks then.

You want a recommendation?

[arby]

What did your accountant advise?

Haven't asked yet - they're v busy as 31 Jan is just around the corner.

[northernladuk]

Haven't asked yet - they're v busy as 31 Jan is just around the corner.

If you've got SLAs with them in your contract gently remind them what they are

[Alan @ BroomeAffinity]

Haven't asked yet - they're v busy as 31 Jan is just around the corner.

Me too. But i can still find the time to @rse about on here.

[SueEllen]

Me too. But i can still find the time to @rse about on here.

My accountant basically states if you aren't a new customer and you haven't given them your self assessment figures by end of September (they actually extend it to October) you can fecking do it yourself.