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I live in the Bristol area.

Have seen lots of Pegasus models on transporters on the way to dealers over the last week or so. I imagine therefore production must be in full "swing".

Dave

When we were looking at the new Pegasus at the NEC, though we decided not to buy just yet, they did say to us, that if delivery went past the date the VAT increased, they would pay the VAT so I assume that's what will happen.

We had the same problem when we first ordered our Indiana we went and found a storage pitch and started paying for it straightaway, because if we couldn't find storage then we couldn't have a van.

Did they make a load of this model then before the launch? I expect they would have had to.

It always used to be that you could ring to see what week yours was being made.

I think on the VAT front you will find you will have to pay it if you don't pay in full before the rise.

Quote: Originally posted by Janx on 05/11/2009

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I think on the VAT front you will find you will have to pay it if you don't pay in full before the rise.

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Quote: Originally posted by avctaylor on 04/11/2009

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2kias is partly correct.
However, providing that the dealer is not on the cash accounting scheme the date that matters is the date of invoice NOT the date of payment, and these dates can be different.
Therefore get an invoice dated before 31st Dec. Pay it on delivery of van.
What the dealer has to pay their supplier is of little consequence to the supplier or the dealer (or you) as it will be claimed back from HMRC anyway (as they are VAT registered).

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I think you will find that the dealer will have to prove that he has received and delivered the van in December or before.

The IR vat dept will be onto this one like a dog with a bone!!!!

Thank you all for your responses, much appreciated.

I've talked again to the dealer today, their finance director is only prepared to apply 15% VAT if I pay in full before the end of the year. This clearly isn't ideal. I think I will give HMRC a call tomorrow to discuss.

Thanks again everyone.

Thanks avctaylor. I have a receipt for the deposit with the VAT number so I will quote this. Will keep you posted on progress ....

Thanks again!

Quote: Originally posted by avctaylor on 05/11/2009

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No, it's perfectly legitimate to provide the invoice dated as per the order date, and for that invoice to state that payment is to be made on delivery of the van (whenever that may be).

Many businesses invoice prior to delivery of items or services and unless they are on the cash accounting scheme it is the invoice date that matters for the vat rate, not when the item or service is delivered nor when payment may be made.

A very simple example of this is if I order something in late December 2009 via an online store, say Boots.com (because they don't charge until despatch). The invoice I get after placing this email will state the item, the order total, and the vat rate at 15%. Boots.com however might not get round to packing and sending my item until January (and if it's out of stock may have to wait for stuff from their supplier which they might not get round to ordering until January and they would therefore have to pay 17.5% vat on...). They send me my order in January and process my card payment on the date of despatch for the amount shown in the invoice on December 22nd. They claim back the vat they paid (be that 17.5% or 15%) and pay the vat I gave them (at the 15%) on their next quarterly vat return.

Caravan businesses are no different to this simplified example. The only thing the dealer may have to provide evidence of is that he received the order prior to 2010 (which in the case in question should be no problem whatsoever).

Hope this clarifies things a bit, but if not your local VAT office can provide more details (free!).

With any luck all those with orders in the pipeline will get them sooner than expected anyway...

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I am sorry. You are partly right but I would want to get confirmation from my local Vat inspector.(Thank goodness I am retired!)

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf#sec411

Interesting reading here so I can understand why a dealer would not want to get into what looks like could be a nightmare on his return in the 1st quarter of 2010 so they may not be prepared to do it.

i have brrn talking to a friend who's daughter has prdered a new van for delivery in Feb/March 2010 .

the dealer has told them that if they pay the vat part of the bill before the end of Dec 2009 he will prepay the vat at the old rate.

Hope this is of some use to you.

There is an interesting article in Practical Caravan this month (Just had mine today) which explains the vat situation. There are two options to make sure you get the lower rate.

1.Pay the full amount for the van before 1st Jan 2010 which they advise against unless you are happy with the deal and your saving is greater than the interest you would accrue if the money was left in a savings account.

2. Pay the deposit for the before 1st Jan 2010 and then pay the balance within 6 months of the invoice date. After that you have to pay the 17.5% rate.

They seem to think it is probably not worth all the hassle if you are only saving £2-300 particularly if the deal is financed over a longish period..