I have a client who made a claim on his insurance regarding some damage done during a job. He bought the materials worth £1700 personally for the customer then received the insurance claim (£1750) and lodged it in the business bank account. He then transferred £1700 from the business bank account to his personal bank account. Am I right on the follwing:-
Dr Purchases 1700 Cr Personal Drawings 1700 Dr Bank 1750 Cr Purchases 1750 Dr Personal Drawings 1700 Cr Bank
Can I claim VAT on the original payment for materials he made to the customer?
Your postings look ok to me. The only thing I would do different is to credit the initial purchase of materials to funds introduced instead of drawings.
If the purchase invoice was made out to your client then I think it would be ok to reclaim the VAT.
Yes of course it should be funds introduced 
