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Finances / Finanzen » uk.finance » VAT
VAT [message #382985] Sa, 22 April 2006 10:26
David Booth  
If I am charged interest on an overdue lease payment, would it be correct to
have to pay VAT on the interest?

--
D Booth
Re: VAT [message #382991 ] Sa, 22 April 2006 11:38
Ronald Raygun  
David Booth wrote:

> If I am charged interest on an overdue lease payment, would it be correct
> to have to pay VAT on the interest?

No.
Re: VAT [message #382996 ] Sa, 22 April 2006 11:58
Christian Konrad  
In message <TQm2g.57409$wl.37887 [at] text.news.blueyonder.co.uk>, Ronald
Raygun <no.spam [at] localhost.localdomain> writes
>David Booth wrote:
>
>> If I am charged interest on an overdue lease payment, would it be correct
>> to have to pay VAT on the interest?
>No.

What if it were a vattable building?

--
Timothy
Re: VAT [message #382998 ] Sa, 22 April 2006 14:30
Troy Steadman  
David Booth wrote:
> If I am charged interest on an overdue lease payment, would it be correct to
> have to pay VAT on the interest?
>
> --
> D Booth

Lease on a VATable business premises? Lease on a "lease hire" of
equipment?

Interest charged by a bank is zero rated, but it is easy to see how an
additional payment on a lease might become part of the lease charge
itself.
Re: VAT [message #383010 ] Sa, 22 April 2006 18:40
Ronald Raygun  
me [at] privacy.net wrote:

> In message <TQm2g.57409$wl.37887 [at] text.news.blueyonder.co.uk>, Ronald
> Raygun <no.spam [at] localhost.localdomain> writes
>>David Booth wrote:
>>
>>> If I am charged interest on an overdue lease payment, would it be
>>> correct to have to pay VAT on the interest?
>>No.
>
> What if it were a vattable building?

Irrelevant. Interest is not vattable. Of course if it's not really
interest but an extra charge, or even an "admin" charge, that would
be a different matter.
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