Our company has got IT equipment under rental agreement (36 months, after the end of the agreement the equipment will become our company property)) at £12k +VAT £2.4k and interest £2640 + VAT £528.
We have put the equipment on Fixed Assets register and depreciating it.
We pay monthly instalments at £406.67+ VAT£81.33.
Can I take the whole amount of VAT £2,298 in the account when prepare the company quarterly VAT Return? Or do I have to spread it over 36 month?