Hire Purchase Agreement
Can anyone clarify for me the correct way to treat the vat on a HP agreement. Should the input vat be claimed as the repayments are made over, in this case the 5 year period. Or can the vat be reclaimed at the start if say the total vat element is £10k and an initial payment of £20k has been made? As a seperate matter the finance charge will be expensed to the periods it relates to over the 5 year period.