Hopefully someone can steer me in the right direction please.
Im reconciling the Bank, Im seeing lots of debit card payments going through the bank for various purchases that my client hasnt got any invoices or receipts for.
As examples, fuel, anti virus software, Staples, B&Q etc
Now at a guess I could assume that the fuel, staples & B&Q would probably include VAT, the anti virus, Im not sure about and there are a fair few other purchases that Im not sure if they would include VAT or not?
Either way as I havent got the receipts, I guess I cant claim the VAT.
In this situation, In Sage Im posting as Bank-Payments and posting each transaction to what I deem to be the correct nominal, for the Fuel Im posting to 7300. As I dont have the receipt, should I enter this as a T0, T9 or should I put it as a T1 and zero the VAT?
with the anti virus software brought online,(and others) where I dont know if the supplier would have added VAT, what T code should I use.
Basically, if you have a purchase which would normally be standard rated but you do not have a bona fide VAT invoice then you would need to show the purchase as Zero-rated item. You would, therefore, use the code T0.
Try Googling the debit card descriptions. Although the VAT man may very well dissallow expenditure where the client hasn't even attempted to keep invoices, they might also be reasonable if there's a good excuse; and he does have the bank statements to prove where he spent the money. This of course, assumes there is a VAT visit that covers this period.
If there are large outgoings, say, £200+, you might try to obtain the invoices from the supplier. If you do not end up claiming some of the VAT, then 100% of the transaction can be deducted from his profits for income tax.
