Interesting - is it only the apparent % which is wrong (ie they've printed 17.5 instead of 20) or is the actual amount of vat you've paid only 17.5% of the net price?
My feeling is that you should record the amount of vat you've actually paid in that transaction - if it can be indentified from the receipt.
If the receipt does not specify the amount of vat you've paid, I would use T1, amend the vat to what it should be, and calculate the correct net purchase figure.
T5, by the way, is normally used for Reduced VAT (ie the 5% rate).
One other thing I have wondered about is the o2 phone bill. Some charges are exempt from VAT. So the VAT amount is never 20% of the net. I always just put in to T1 and change to VAT amount, but should I be doing on two lines with one at T1 and the next line at T9? Or does it not make any difference? I have not been doing bookkeeping long so do not want to pick up any bad habits.
I always split out the exempt and taxable items, regardless of the value, as a matter of good practice. Not sure how many others do but I find that the best way
.......T1 and the next line at T9? Or does it not make any difference? I have not been doing bookkeeping long so do not want to pick up any bad habits.
Hi
You have said T9 for Exempt supplies, you should use T2. T9 is for transactions outside the scope of VAT.
With regard to the VAT error HMRC say you should get a corrected invoice from the supplier.
