C2W -V.A.T. Question

markos1963
markos1963 Posts: 3,724
edited October 2010 in The bottom bracket
Ok so it's probably a bit late as my scheme is nearly over but can anyone tell me, with proper authority ie accountancy or legal knowledge where I stand with my company.

They offered the scheme lsat year through Halfords and I took it out as it seemed a good deal, when the paperwork can through I queiried the amount because it didn't seem right and was told that the vat wasn't being passed back to us. Now my company is vat registered and I thought that they were supposed to pass on the vat saving to the participant.

Is there any compulsion in law for companies to do this or can they pocket the vat saving for themselves?
Norfolk, who nicked all the hills?

http://farm4.static.flickr.com/3013/243 ... 8d.jpg?v=0
http://img362.imageshack.us/my.php?imag ... 076tl5.jpg
http://img216.imageshack.us/img216/3407 ... e001af.jpg

Comments

  • spen666
    spen666 Posts: 17,709
    no compulsion on company to pass on VAT saving at all

    [ I am a solicitor and a chartered accountant - does that count as suitable authority]
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  • markos1963
    markos1963 Posts: 3,724
    spen666 wrote:
    no compulsion on company to pass on VAT saving at all

    [ I am a solicitor and a chartered accountant - does that count as suitable authority]

    Thanks for that, I knew you'd be useful for something like this :D

    Doesn't improve the situation at all though :cry:
    Norfolk, who nicked all the hills?

    http://farm4.static.flickr.com/3013/243 ... 8d.jpg?v=0
    http://img362.imageshack.us/my.php?imag ... 076tl5.jpg
    http://img216.imageshack.us/img216/3407 ... e001af.jpg
  • tailwindhome
    tailwindhome Posts: 19,436
    Spen's correct.

    They do however have to charge VAT when they sell you the bike at the end of the scheme.
    “New York has the haircuts, London has the trousers, but Belfast has the reason!
  • Sirius631
    Sirius631 Posts: 991
    Although there is no compulsion for Halfords to pass on the vat saving, is there anything saying that a vat registered couldn't claim the vat back subsequently? After all, they are buying the bike to hire to an employee.
    To err is human, but to make a real balls up takes a super computer.
  • tailwindhome
    tailwindhome Posts: 19,436
    Sirius631 wrote:
    Although there is no compulsion for Halfords to pass on the vat saving, is there anything saying that a vat registered couldn't claim the vat back subsequently? After all, they are buying the bike to hire to an employee.


    A VAT registered company pay VAT to Halfords and reclaim it from HMRC.

    So they pay Halfords £117.50.

    The company can reclaim the £17.50 from HMRC and what most employers do is only charge the employee the £100 (as rentals)

    In this case the company are charging the OP £117.50, reclaiming the VAT and trousering it.


    ETA Halford's in turn pass the £17.50 to HMRC who spend it
    “New York has the haircuts, London has the trousers, but Belfast has the reason!

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