If you're buying things on Hire-Purchase for your business, you'll want to raise these in Hnry as Business Expenses to get the right tax relief.
It's all pretty straight-forward to do - and all the information you need will be in your Hire-Purchase agreement.
Let's assume you've bought a Laptop on a Hire-Purchase agreement - here's how you need to add it to Hnry:
- When you purchase the item on Hire Purchase, raise an expense for that full amount in Hnry (including any GST amounts)
- You'll then get the correct GST relief when your next GST return is filed
- If it's over $500 in value, the depreciation of this item will be split over the coming years, applied automatically in Hnry - so you'll get income tax relief on that over time
- You can also claim the interest incurred on the payments every month, and therefore you can add these in to Hnry as individual Business Expenses each month (or whenever interest is charged/payments are made). The category to use for these expenses is 'General Expenses'
- N.B. You'll need to check the Hire Purchase contract to find out those exact interest amounts, as they won't be the same each month, and will most likely be higher at the beginning of the contract, reducing over time. You'll need to upload a receipt or statement showing those interest amounts, each time they are claimed