UK Hire Purchase Agreements

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Mar 1, 2017
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Good evening

I undertake bookkeeping services for a client and they deal with Hire purchase agreements. My understanding is that you can claim the VAT back in one go. I just want to make sure what I have entered in the Xero system is correct. I have put a VAT only invoice on the system. The paperwork received is from the finance company which states that the invoice is for VAT purposes. The amount is approx. £77 plus vat and uses the accrual VAT scheme. Could someone confirm if this is correct. The accountant my client uses is on holiday and I need to file the VAT return by the end of this week.
 

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