Hi. I'm doing bookkeeping for a client who has been self-employed for some time. She has now set up a limited company and become VAT registered. We are also setting up a new Sage programme for the new company, so a clean sheet from the off.
I understand she can reclaim VAT for the last 3 years (6 monthson services etcetc - have spent a LONG time reading about this on HMRC!) and i have calculated the reclaimable amount on an excel sheet.
BUT - the repayment will be included in her first VAT return for the new company, so how do I record this "incoming amount" on Sage please? Will she have to pay tax on it??
