Finance Lease vs Operating Lease
After some advice please.
We have just taken out a lease for some equipment. The Lease Agreement specifically says that ownership of the equipment remains with the Leasing Agency and that we cannot claim Capital Allowances on it.
I rang the leasing company and they advised that all payments including a large (£20k) deposit all go through the P&L.
Is this correct? We are liable for insuring the asset and can pay a nominal fee at the end of the leasing period to transfer ownership to us.
What do you think the treatment should be of it? Should I actually put it through the P&L or on the BS (Dr Fixed Assets Cr Obligations Under Finance Lease) - and then at what point would I reclaim the input VAT.
Any advice much appreciated.
- General tax book with planning 133 2
- Limited Company - Personal Bank Account 3,181 69
- 2013/14 failure to submit end of year submission 267 11
- Gift of property & improvements 103 2
- Error in past Corporate tax return 330 5
- VAT Invoice 117 4
- Company overdue but wants to be struck off 795 32
- IHT and Swiss Property 118 1
- Sale of house with planning permission - tax free? 200 3
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 165 7
- Vat code for journal entries of director's expenses 137 2
- Claiming VAT and missing receipts 436 10
- HMRC overreaching its powers -again against a small surveying firm? 361 8
- Help with tax codes on Sage 247 1
- Letting relief on property transferred to a spouse 177 6
- VAT code for invoice from not VAT registered company 258 4
- Accounting for a finance lease 158 4
- SA302's anyone?? 530 16
- A change from the old Q v NQ debate 1,641 41
- Renting for military reasons 191 2
- Skandia using wrong address 1,620
- Nil Rate Band Trust - index linked debt by way of charge over property 900
- International interest certificate 509
- NOVA 367
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 291
- Management expenses for investment company 263
- Bonus Bonds 260
- tax on apprenticeship income 172
- Entertainer withholding tax in Australia 171
- P11D benefit received by widow 148