The VAT is of course returnable to the operating company and shall be held to cover maintenance, insurance, hangarage ….

:confused:

Is it just because I have had a good lunch with all that entails that I am finding it impossible to fathom this sentence?

If a company charges VAT it is not ‘returned’ to them.

VAT paid on maintenance, hangarage, etc etc can be offset against it (i.e. the 20%) but otherwise every penny of VAT charged has to be handed over to HMRC

Moggy