Hire Purchase Agreement | AccountingWEB

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.

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At the start

Euan MacLennan |
Euan MacLennan's picture

many thanks

Ned |

Yes claim at start by posting

Jane Dance |

Vat on HP agreement

Ned |