Hi tonyworthington
You should create a 100% VAT expense. Within the expense enter the Payee, the bank account that the payment was made from, the date the payment was debited from your account, in the category section on line one enter an expense account, i.e purchases in the amount column enter 0.01, in the Amounts are field select Exclusive of VAT, enter 20%S in the VAT column. In line two enter the same expense account as in line one in the amount column enter -0.01 and enter Exempt in the VAT column, you will now be able to enter the VAT amount in the VAT field.