Purchase of asset on finance

[Mary123]

I am a sole trader and purchasing a tractor on finance. I am vat registered on cash accounting.
I have to pay the vat up front then pay the balance by instalments.
Can you please advise how to do the various transactions on quickfile
Thank you in advance

[QFSteve]

Hello @Mary123

I found this in the forum which may help

New Vehicle (Company Car) Asset Entries

Our company has purchased a vehicle , partly financed from cash at bank and part from a Hire Purchase agreement (24 months) Having not used nominal ledgers in QF before, please can you explain how to enter the asset , the HP credit and the HP payments?

[Darren_Smith]

Hi,

It sounds like you would like to create a VAT-only purchase invoice for the up-front payment, followed by regular purchase invoices for the remaining payments.

Forum member @ian_roberts explains how to create a VAT only invoice in one of his posts. His example might help you:

You could swap out the £2,440 from the example and replace it with the price of the tractor to show VAT payable. Then deduct the price of the tractor in the line below, as in the example.

The full forum post is at this link:

Claiming VAT Element of Insurance claim

How do I handle a VAT Only Invoice? It is a VAT invoice from the garage where the vehicle was repaired. No other part was involved with the claim. I have followed the instructions I found on the forum, (that was for import tax) but when I come to do the return it is not recognising the VAT, which is £488.00. I spoke with the VAT office, they told me to read Public Notice 701/36, this document seems to be for Insurers and not the customer. Any help would be appreciated. I did ask Santa but he sai…

Hope this helps

[Mary123]

Hi Darren

Thank you that makes sense for the vat part.
How do I deal with the net purchase of the asset as this is on a finance agreement and would need to go to the fixed assets

Thank you