Manual VAT when explaining transactions in the bank

Hi Master99,

You can select ‘No VAT’ on the lines which have items on that do not need to have VAT added and then on the lines/products that you do want VAT added select ‘20% VAT’ for example. You can also set this up in your Products and Services list so that when you select the Product/Service when creating the bill it auto-fills the VAT box to No VAT or 20% VAT / whichever VAT code you’ve assigned to that Product or Service. 

Let me know if this helps. :)

Hi, no i dont get it. So say i have the transaction coming out for £100 but i paid only £5 VAT as some of the items included in £100 was VAT Exempt. How i would record only £5 of VAT?

Hi Master99,

You’d create the bill and on one line have an item for £25, with 20% VAT applied to that line which will give you £5 VAT on the bill. For the other £75, you’d do this over a separate line or numerous separate lines and apply ‘No VAT’, therefore the total VAT on the invoice would be £5. 

It’s easier to break your bill down item by item and apply VAT to only the lines required. 

Is there any easier way on doing this? Or do i need to creat the bill on every receipt? What if its not an invoice its just say supermarket receipt?  Does the quickbooks going to make it any easier? As i do attache the receipts so it should be enough for MTD?

Thanks

You can use an expense or bill. 

A supermarket receipt would be classed as an expense as you pay for the items there and then, a bill is an invoice you receive and then pay ‘x’ amount of days later. 

For either of these you can attach photos of the receipts and you can also create Expenses from the Online Banking page if you were to hook that up to your bank or manually import transactions.