Car Lease 50% VAT claim

RichardAAT

How do you claim the 50% VAT on a car lease ?
How to record the car lease TAX invoice to recover 50% of VAT in accounting software.
Lets say Net £1000
(VAT20%) £200
Gross £1200

Krisso

We do this currently and under guidance from our accountants we put the gross in full and key in 50% of the VAT which obviously increases the net. The VAT report should show this when uploading the return.

RichardAAT

I am sorry but I dont understand what this means practically. Do you mean you record 1100 net 100vat and 1200 gross ?
But vat is the vat rate ?

Krisso

Correct vat is still 20% rate but you are only entering up 50% of it so the other 50% is added to the net to equal your gross total of the invoice.

RichardAAT

Is there any other way to deal with car lease VAT claim enter the as
Net £1000
(VAT20%) £200
Gross £1200
And claim the 50% VAT in a different way ? Maybe via VAT control account ?
How the auditor knowd I am not manipulating the figures. Why the above entry is the correct entry ?

Krisso

Others may process this differently. We mark up the invoice as 50% vat claimed when processing it as I suggested.

You are manipulating the figures so you would need to let your auditor know that you have only claimed 50% Vat on the invoices in any case.

I assume you are claiming 50% vat on private v company usage.

I’m sure others will give you other suggestions to process it, I have only given you the way suggested to us by our accountant/auditor and it works for us.