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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Claiming VAT on a hire purchase agreement
Post Info TOPIC: Claiming VAT on a hire purchase agreement
Jbook


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Claiming VAT on a hire purchase agreement
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Hi

My client has taken out a hire purchase agreement on some plant and machinery. Can they reclaim the input VAT straight away or do they reclaim a bit on each repayment?

Thanks.

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Fay


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Date:
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With a HP agreement your client can reclaim the input VAT straight away. You need to credit the gross cost excluding interest to the HP account, debit the fixed assets with the net cost and debit the VAT account with the input VAT.

Fay

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Jbook


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Posts: 6
Date:
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Thanks Fay.

smile



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