Contract to be paid by installments over a year

Hello,
Please could you advise how I enter a purchase that will be paid by monthly direct debit installments? Its for advertising, ex vat cost £610 + vat £122.00
Can I claim the VAT back in one lump sum when the contract starts instead of a bit each month?
Many thanks

Posted by Janis Harbour on Jan 3, 2012 12:17 PM GMT

Hi Janis,

It sounds like the advertising you are receiving is spread over the course of the year along with the payments. If so, then each month create a Money Paid Out from the Cheque Account to the Advertising expense account. I don't think you can reclaim the VAT up front, but please check this with HMRC on 0845 010 9000.

Regards,

Posted by Mark McLaren (Solar Accounts) on Jan 3, 2012 12:24 PM GMT