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twmmwt


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Sage query - entertainment expenses
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I'm a newbie book-keeper so apologies for my naivity, but I am currently posting an employee's expense claims into Sage.

He has one entertainment expense with a receipt, but as we can not claim VAT on this do I post it with a T9 tax code?

And how about expenses that do not have VAT receipts? Also T9?



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Maria

East Sussex
Cheshire


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Hello ??
Can you please add your name to the signature section - we have a bit of campaign on the site at the moment to request everyone does this (the link is around somewhere).

T9 is for transactions outside the scope eg wages/payments to HMRC/bank charges (unless those Bank charges do carry VAT - a few do, but not many!), so the others, including entertainment I would key as T0 - will then show in the VAT return but will not claim any VAT back.

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 Joanne 

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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
leshoward


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Joanne is absolutely right (and congratulationsoon the award!).
I did ask HMRC this same question, and they didn't know!

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twmmwt


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thank you both.

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Maria

East Sussex
FoxAccountancyServices


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Oops, have I been doing this wrong for many many years?!! I post entertainment as T9, as I always thought that, as it was un-allowable, it was outside the scope, rather than zero rated or exempt? I doubt it matters ultimately, as long as the VAT claimed is correct - but I am interest to hear the logic, if you have time Les? Or is the answer lost in the abyss?

After years of posting bank charges as T9, someone on here pointed out they were exempt LOL so I have started using T0 for those now. (I use T0 for exempt and zero rate, and T2 for non vat registered businesses)

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Leger


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Nicked from a post on Aweb - Source Louise (figurate co uk)  At one time I used to post everything as T9 that wasn't T1, and the accountant raised no objections.  To my mind it's not all that important as long as the VAT is recorded correctly.  The box 7 figure is only used for statistical purposes.

 

T0 (Zero Rated) = trains & tubes, some food, scheduled flights

T1 (Standard Rated) = most purchases from a VAT-registered supplier.

T2 (Exempt) = postal supplies provided by the post office (eg, you buying stamps)(see:http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000114&propertyType=document#P34_2182 )

insurance transactions (see:http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000129&propertyType=document#P46_4723 )

Financial Services/bank charges (there are some exclusions from this)

T9 (Outside scope of VAT) = unregistered suppliers, payroll transactions, internal bookkeeping journals (except may be those correcting a previous VAT error), tolls & congestion charges.



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 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
twmmwt


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Thanks this is really useful. Having looked back in our records, entertainment has always been posted as T9, but perhaps I should change this now (going forward)?

On another point, 3 entertainment transactions were posted as T1 (accidently I guess?) and I have since posted our VAT return to HMRC. The VAT amounts to about £12 but I would like to post a correction on our next VAT return if this is possible. How do I do this?

My boss told me to "just pay them £12 more" than I should, he doesn't seem to realise its not quite that simple :- )



-- Edited by twmmwt on Monday 16th of November 2015 03:42:36 PM

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Maria

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