- Click on the + sign and choose Expense.
- Either choose a payee or leave that box empty.
- On the first line of the expense choose any of your Expense accounts
- For the amount enter a pound (1) and choose 20% Sas the VAT code.
- On the second line choose the same expense account.
- For the amount, enter minus a pound (-1) and choose 0% VAT as the VAT code.
- The total of the expense will show as 0.
- Under the Subtotal box the VAT box will become editable.
- Enter the desired VAT amount into the VAT box and Save the expense.
This will create a 100% VAT transaction that will show in Box 4 on the VAT return.