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Kennels9
August 12, 2020
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Upfront VAT on HP Vehicle & deposit paid, how do I claim back and set up for the monthly payments for the asset?

  • August 12, 2020
  • 1 reply
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Hi,

 

So we have recently purchased a vehicle through the company and paid the VAT upfront. We paid £500 deposit 1st and then the VAT along with another 1,610  deposit. We will be paying monthly payments for it. Help!!! How do i put this into Quickbooks? We have Simple start (Ltd Company rather than self employed). So when I scan in the receipt it registers the VAT but the full totally is incorrect? 

 

Please help, thank you

Best answer by Angelyn_T

Thank you for getting back to us here on the Community page, @Kennels9.

 

I'm here to share additional steps on how you can record your transaction accordingly.

 

If you paid upfront for VAT, I recommend creating 2 bill transactions. One for VAT only following the steps given by GeorgiaC above and the second bill is for NO VAT which is the remaining balance for the purchase.

 

On your banking, you can just pay the first bill so it records the VAT and applies the remaining balance to the second bill.

 

To learn more about entering and paying bills in QBO, check out this article.

 

This link also contains related topics you can read more about QuickBooks as your guides in the future.

 

Know that I'm only a couple of clicks away if you need anything else. I'm always here and ready to help. Keep safe always!

1 reply

G
GeorgiaC
August 12, 2020

Hi Kennels9,

 

Thanks for joining us here on the Community 👋

 

You can enter a 100% VAT bill to record and reclaim the VAT which you've paid upfront on this, simply follow the steps below to do this: 

 

1) Click on the + sign and select Bill

 

2) Enter the bill details (date, payment account) and set the VAT 'Amounts are' to 'Exclusive of VAT'

 

3) On the first transaction line, select the account you want to use. For the rate, enter £0.01, and for the VAT code, select the 20% Standard code.

 

4) On the second line, select the same account as above. For the rate, enter -£0.01, and choose the Exempt VAT code.

 

5) Scroll to the subtotal - the total of the invoice will be 0. You can then edit the amount in the VAT box to input the amount you need - this will post to box 4 of the return.

 

 

You can enter an expense to record the monthly payments (+ New > Expense), selecting the relevant account under 'Category' - if you're using either Essential or Plus you can schedule recurring payments for this by selecting 'Enable recurring payments' on the toolbar when entering the expense. 

 

Get back to us below if you have any Q's 🤗

K
Kennels9Author
August 14, 2020

Thanks for this, what do I do with the bank transaction in the transaction section? So The line of the expense is 9500 inc 7890 of upfront VAT?
Thanks for your help.

Angelyn_T
Angelyn_TAnswer
August 14, 2020

Thank you for getting back to us here on the Community page, @Kennels9.

 

I'm here to share additional steps on how you can record your transaction accordingly.

 

If you paid upfront for VAT, I recommend creating 2 bill transactions. One for VAT only following the steps given by GeorgiaC above and the second bill is for NO VAT which is the remaining balance for the purchase.

 

On your banking, you can just pay the first bill so it records the VAT and applies the remaining balance to the second bill.

 

To learn more about entering and paying bills in QBO, check out this article.

 

This link also contains related topics you can read more about QuickBooks as your guides in the future.

 

Know that I'm only a couple of clicks away if you need anything else. I'm always here and ready to help. Keep safe always!

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