Hi, am intending to purchase a new Van for business purposes but at this point am not ready to pay the full amount outstanding. I intend to pay the VAT amount only at this stage so I can claim the VAT back on the next quarterly return.

I am currently registered as a sole trader, how should I record this payment in Solar Accounts?

Many thanks.

Bryan.

Hi Bryan,

Record a purchase invoice as described in Step 1 on this page:
http://www.solaraccounts.co.uk/help/how-to-record-a-hire-purchase-agreement.php

Then record a normal purchase invoice payment with the Amount Paid figure equal to the VAT amount on the invoice.

Regards,

Thanks Mark. I forgot to mention that I also paid a £500 deposit for this vehicle when I first ordered it. I recorded this payment using the "Money Paid Out" option. Would it be best to delete that transaction and create a further "Purchase Invoice Payment"?

Thanks

Bryan.

Hi Bryan,

Yes - you should record the deposit as a purchase invoice payment instead.

Regards