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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Supplier Write off
Post Info TOPIC: Supplier Write off
Sammy76


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Supplier Write off
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I am writing off three supplier accounts. These are never going to be paid for various reasons and the suppliers are not expecting payment. 

On sage when I do the Write off, it automatically posts to Tax Code T9. One account (two years old) was zero-rated anyway so no VAT was ever claimed. But on the other two accounts (18MONTHS and 1Yr old) VAT was claimed on them. Do I need to post journals for the VAT amount. As the VAT was reclaimed, should we be repaying it on the next return (due now). 

Really hope someone can help - quite urgent as need to do VAT Return today.

Many thanks

 



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Digimojo


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I did this a couple of weeks ago for my one and only client. Is your client on the standard or cash accounting vat scheme?

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Sammy76


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Standard so Vat was claimed last year.

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Digimojo


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Sage have a step by step guide for exactly this. Give them a call or go on their website. There are three steps per transaction to clear the supplier account and allocate the vat for repayment. If I can find the link I'll post it here when I'm back at my desk. ð

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Sammy76


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Found it - Post a credit for VAT only to BAD Debts, then Supplier invoice to Bad Debt. Easy when you know how lol

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Digimojo


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Then I think you need to post to your vat liability account too. My stupid work computer has been upgraded and our antivirus won't display the sage helpsheets right now!! I have a print out at home. I'll double check later. Glad to help, even if just a little bit!
:)



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