Vat cash accounting for hire purchase items

[DinahJones]

I have looked up if I am allowed to collect the VAT on a Van purchase when it is paid by hire purchase and it confirms I can
However I can not work out what entries to make in the accounts.

[QFSteve]

Hello @DinahJones

I found this in the forum which may help.

Hire purchase and claiming input

Cash accounting. Van purchased on hire purchase for £24k with £5k deposit paid through bank. No supplier or purchase invoice raised as I’ve entered the van addition via journals. However, input vat and net cost does not show in boxes 4 & 7. I assume QF can’t pick -up entries on the vat return through journals then ? What’s the best way to ensure the correct amounts are shown in boxes 4 & 7 to reflect the transactions ?

[DinahJones]

@Hire purchase and claiming input

t the transactions ?

I experienced this. It does seem that VAT can not be picked up via Journals so I entered it as a purchase invoice. Then I opened a cash account, which has to be done in the bank area, not trial bal
Cashed the invoice off to the new cash account. All up-and-coming payments were coded to this code.