Case Study: VAT For Onto, Electric Vehicle Subscription Service Provider

Onto is a fast-growing venture capital-backed car subscription business. Onto purchases fleets of electric vehicles (EVs) each month. It distributes its fleets through a digital platform as a subscription service to their customers.

On the fleet purchases, they pay up to £2 million in VAT each month which they could reclaim. However, each time, they would need to wait up to three months to get the money back.

The user had separate EV finance arrangements provided by major international banks but funding the VAT required a lengthy documentation process and a time lag they couldn’t afford.

The user needed to find a simplified and more efficient process to benefit from the tax credits they were owed. Adsum was recommended to the user by a peer within their network.

Not only did Adsum calculate and advance the funds they were owed, but we also simplified the legal documentation process with a fully automated system that did not restrict their existing finance arrangements.

“Adsum identified our VAT requirement by simply syncing into our accounting and banking systems. This freed up to £1.25 million of cash flow which we were able to reinvest towards developing our subscription app service.”

Peter Phillips, CFO at Onto

Why Adsum?

At Adsum, we want to make finance frictionless for our users.

We don’t expect you to pitch your business plan and jump through approval hoops – our tech sees how you spend, forecasts your tax credit and we advance you the funds you have earned. We combine a tax specialist service with funding, all with a process that is faster and cheaper than external advisors and banks.

We have a proud history of saving users up to 40 hours a week that your CFO would have spent on tax compliance for reclaims. We give the user certainty over cash flow and budgeting and free up your time to spend on growth and focus on your customers.