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t_pilgrim
August 14, 2019
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Lease Hire

  • August 14, 2019
  • 1 reply
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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 !

Best answer by payment after leaving

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.

1 reply

P
payment after leavingAnswer
August 14, 2019

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.

P
Paulg1969
August 15, 2019

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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