If I were to buy a van on HP, at what point can I reclaim the vat? Do i record the input vat of £2,750 when I record the asset and the hp creditor, or with the deposit and each intalment made?
The scenario is as follows:-
Van Cost £13,750, plus £2,750 vat = £16,500
Deposit of £4,500 to be made. Balance remaining of £12,000, plus HP interest of £2,938 = £14,938 to be paid.
1st instalment is £504, followed by 46 instalments of £305 and a final payment of £404.
Thanks for any help.