Scenario - Company has bought new Machinery. There is a purchase invoice of showing the buyer as the company from Business X. Net £x, VAT £X, £gross
There is then a finance company payment schedule which shows payments will be made from the company to the finance company. The monthly payments show net£x, VAT £x, £gross
So at what point is the correct way to claim the vat?
As the initial invoice is in the clients name, i would have thought it should be recongnised as an asset then and liability and VAT claimed when it was simultaneously claimed by the finance company.
Then the monthly payments should have no vat claimable?