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Post Info TOPIC: Bad debt relief, VAT and SAGE


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Bad debt relief, VAT and SAGE
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Hi

I've written off a customer's account as a bad debt on SAGE (as it was a year old and met all the conditions outlined by HMRC).   Now I'm wondering how to reclaim the VAT on box 4 using SAGE.  Can anyone help please? 

Thanks



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Expert

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Just do a journal for the VAT amount

Dr Purchases Tax 2201

Cr Bad Debt 8xxx

and code the Dr as T1 and the Cr as T9

Regards

MarkS 



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.



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When you run the VAT return you make an adjustment to box 4 for the VAT element, this decreases your VAT liability on the return.

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Steve


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Thanks for both of your replies.  This explains things a bit clearer.  I will take a back up before posting the journal.



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