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JackS11
July 4, 2022
Question

VAT on bank review for non trading transactions

  • July 4, 2022
  • 1 reply
  • 0 views

Just after a quick bit of advice on the correct way to code certain transactions.

 

I enter all my transactions based on my bank feed, using this as a to-do list for coding/categorising the transitions, adding receipts/invoices and VAT.

 

However I'm unsure how to populate these for say transactions which are loans from a director into the business account as a loan to the business, or receipt of intercompany dividend income.... so I'm putting:

 

- Transaction type: Deposit (rather than Sales receipt)

- VAT: No VAT (0% Sales)

 

Is this correct? And if so, for VAT what's the different between 0% sales and 0% purchases? These transactions (loans and dividends into the business) are nether sales nor purchases...

1 reply

A
Ashleigh1
July 4, 2022

Hello JackS11, 

 

Welcome to the Community page, 

 

So you would put it as no VAT, you should use sales for money in and purchases for money out. If you have a look at this link it tells you what all the different VAT codes are and where they hit in this article. 

 

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