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t_pilgrim
Aug 14, 2019 2:08 PM UTC
Solved

Lease Hire

Is there anyone that can give me any advice on setting up a Lease Hire contract in Quickbooks Desktop for the lease of a lorry as have spoken to intuit support and they didnt have a clue what i was on about !

payment after leavingAnswer
Aug 14, 2019 2:40 PM UTC

Hi t_pilgrim

 

If you are renting/hiring the vehicle throughout the lease term you will simply create expenses and create an expense account relating to a lease Hire. We must make you aware that we are not trained accountants and this is classed as professional advise and therefore we advise you to confirm the above with an accountant.

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2 replies

payment after leavingAnswer
Aug 14, 2019 2:40 PM UTC

Hi t_pilgrim

 

If you are renting/hiring the vehicle throughout the lease term you will simply create expenses and create an expense account relating to a lease Hire. We must make you aware that we are not trained accountants and this is classed as professional advise and therefore we advise you to confirm the above with an accountant.

Paulg1969
Aug 15, 2019 10:26 AM UTC

There are 2 types of lease, a finance lease where you own the asset and an operating lease where you hire and return at the end. A finance lease is mostly a balance sheet transaction, you claim the asset and VAT as and when you took out the finance and the finance becomes a loan. The repayments are then split with the capital element of the repayment going to the loan and the interest to an interest cost on the profit & loss account. If it is an operating lease then the payments go direct to the profit & loss account as a lease and the VAT claimed on the payments made.

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