Our company arranges the car lease purchases for self employed salesmen who charge the main company for their services. Reasons are historic and also bulk discounts apply which then get transferred. So the Company is currently recovering 50% of the VAT and charging 100% on the invoicing that I can see so far but I am thinking this is incorrect as the Company is not the end recipient of the car (and hence not using the car for partly private reasons) and the end user, who is using the car is claiming 100% VAT relief. Surely this is a disbursement?
Any views and clarity appreciated.