My company have had to pay the vat on an insurace payout for us to claim back so the amount that we have paid is 100% vat how do I reconcile this on my vat return.

Hi a-tree1 If you would like to account for a transaction that is purely VAT please follow the instructions below:

1) Select New+ > Expense > ensure that you enter the bank account that the amount was debited from in the Payment account field and the date the amount was debited in the Payment date field 

2) On line one in the category column select the purchases account > In the Amounts are field enter Exclusive of Tax > in the amount field enter 0.01 > in the VAT column enter 20%S (20%)

3) On line two enter the same purchases account as line one in the category column > in the amount column enter -0.01 > in the VAT column enter Exempt > edit the amount of VAT you would to reclaim in the VAT field in the Subtotal area.

Thanks