Conference terri::cars_uk

    The lease cost quoted on VTX (when it's available ;-) are inclusive of
    VAT. However, our base supplement also includes VAT (see 802.88), i.e.
    it is #3,600 + VAT = #4140 at 15%. 
    
    My query is twofold
    
    - whilst the cost of the cars will go up with VAT, the base supplement
    is not due to be reviewed until May => mid-May
    
    - given the vagueries (sp?) of the car scheme, i.e. two quotes for the
    same car on different days can be radically different, there is no
    guarantee that the re-quotes on the cars will not be substantially
    higher.
    
    I am/was particularly interested in the 323F at 78 spondooliks per
    annum (to me). I have copied the quote from VTX. It was given as valid
    until 17/4/91. If the re-quote is unacceptably higher, I may ask for
    some 'explanation' !!!
    
    Ours not to reason why .... (you complete the quotation !!)
    
    Colin
    
    P.S. Mr Mod, I guess these would be better placed in note 802 ??

    What happens if say, you order a car at a certain price and by the time
    you get the car the base supplement goes up? Does the price you pay come
    down?
    Or even if the base supplement goes up when you already have a car,
    does the price we pay come down?
    
                   Gerry.

    Sorry SD, I think I missed the point. What part of the vtx announcement
    were you referring to ?
    
    - RS

No one has answered my question yet - since VAT is reclaimed by the
company, why should the VAT rate change affect costs?

Peter.....

    
    Haven't you learnt yet, Peter.
    
    If people start answering questions you haven't answered it means they 
    don't know the answer to your question! :^)
    
    Mark

I've been wondering exactly the same thing. All I could work out was that the 
part of the VAT that can't be claimed back is the extra we have to pay on 
top of the supplement. So if you had to put an extra 1000 pounds towards 
the car it will now be 1025 cos of the extra 2.5% VAT. Is this right ?

And if it is why don't carfleet simply adjust the quotes?

How about someone from carfleet telling us the FACTS for once....

								G.P 

    Has anyone else had their order forms sent back yet? I got mine back
    unprocessed on Tuesday even though it was sent in over a week before and 
    could easily have been processed before the 1st April.
    
    It has taken since the 16th Feb for car fleet and insurance to confirm
    my car as a write off and for them to process my quotes. Now I have to
    go back to the start and submit more quotes and order against one of
    those. So you can guarantee it will be at least 4 months before they
    actually manage to order and deliver something, and for all that time 
    my cost centre is going to have to pick up the cost of a hire car. I
    think this may well cost the company a hell of a lot more than the
    extra 2.5% VAT.
    
    Cheers,
    
    Bitter & Twisted (and getting more so with every day that passes that I
    have to drive a Rover) of Basingstoke. 

    Leaving aside the interesting discussion on Company Car Tax ;-),
    according to the Times this sunday, a lot of retail stores are taking
    advantage of the VAT change to increase prices by up to 10%. Of course,
    this is extremly unlikely to happen with the cars on our lease
    scheme.........!!??
    
    Colin
    
    P.S. To return to CCT, I currently do around 75% personal miles, so I'm
    quite happy to pay it. If I had to run a car of equivalent standard,
    I'd be a lot worse off. On the other hand, if I had to buy my own car,
    I would be unlikely to need it for business, and so would buy a second
    hand banger instead !!!

    Apparently Hertz has such tremendous buying power that Ford and
    Vauxhall are offering cars to them at _half_ the list price.
    
    If this is so, it would certainly compensate for the low resale value that
    they are suffering at present. This makes the massive increase in the
    lease costs even more farcical.
    
    - Roy
    
    PS Re: .16 Bad luck Spike about the returned order. Keep us informed.

    There are two certainties in this life, death and taxation.  On the
    whole I suspect death is less painful.
    
    I am in the process of becoming a small business and the VAT is indeed
    a complex business.  The only light at the end of the tunnel is the
    fact that I won't pay CCT on the car my business buys for my use.  Over
    the years I have had endless grief with CCT and the problems of getting
    the TAXMANto recognise that I do over 18,000 company miles.  As a
    result of claiming a refund in 88/89 I was assesed with 1/2 the rate
    for 90/91. Despite a P11D showing 24,000 miles for 89/90 no refund was
    forthcoming until last Saturday, the very last day of the tax year and
    the last day they could refund without paying me interest!  The refund
    for 88/89 was immediatly cancelled by a garage bill for the family car.
    
    Moral.  You will never win.  If Digital tried to absorb the 2.5%
    increase in VAT then it would be a taxable benefit and we would have to
    pay tax on it.  If you think this is nitpicking think back to the M&S
    vouchers we get a Christmas.
    
    Rob (who briefly held a cheque for 230 pounds from the Revenue, until
    the financial adviser relieved him of it to pay some boring bill)

    
    Re .20
    
    How are you planning to avoid CCT on the car your company buys for you?
    
    I'm sure a large portion of the noters here would love to know! :^)
    
    Mark

	Peter,

	I have always taken the money instead of a car, and since the rules
	changed regarding DIGITAL claiming the VAT back, I do NOT get the
	VAT portion of the car supplement.

	So if the car supplement goes up 2.5% because of VAT, it won't effect 
	the money I receive, I don't get the 15% either.


	Heather

	PS anyone know where I can buy a car VAT-less......?

    
    
    How much do you get if you opt out of the car scheme??
    
                  Gerry.

There was a ruling some time back that once you'd opted to take a car instead of 
"management Supplement", then even if you opted out of the car scheme you could
not get the cash instead, although the basic supplement would be given.  Have
things changed?

Brian (take the money and drive)