Any bookkeepers or accountants able to help?!

[Hmmhelp]

I do my father in laws VAT returns, he has a small business. I have my level 1 & 2 in bookkeeping however his accounts are the only thing I really do!

He has just bought a new van for his business. He has paid a deposit of £4233 and £19585 will be paid to RCI finance in installments. The invoice shows the invoice total is £23818 and that the VAT amount is £3907.17.

For his VAT return, would it be the whole £3907.17 that gets put through? Even though he has only paid £4233 deposit?

Sorry this might sound like a silly question but his books are usually very easy but this new van has had me doubting myself!

Thanks!

Can you ask the suppliers to send an invoice through for the deposit only? With a VAT breakdown on it?

Yes I spose I could do.

My father in law has told me he can reclaim the entire vat back from the van even though it will be getting paid on finance. So it was just to really find out if this is true or not.

Thanks

Hiya, I'm an accountant.
Yes, it's quite common to claim the VAT in full, and the loan is irrelevant.

Your bookkeeping will look something like this:
Journal 1
van - fixed asset 10000
VAT - vat liability 2000

Bank deposit 4000
Bank - pay balance 8000

Journal 2

Bank - loan 12000
Loan over x years 12000

You'll also need to journal out items such as road tax, from the van on the balance sheet, to the motor expense.

Does that help?

Yes @Bumblefeet thanks very much!

I know what I’m doing now!