I have been paying a direct debit for electricity every month without accounting for vat. I have not received the invoice for the Period January - March (current VATT quarter and December 2013 - last quarter. This shows a vat amount How do I account for this now in my current quarter vat return? I pay 222 every month and the totals in the invoice for the period are £640.44 and VAT 128.09. so I have overpaid for electricity but as yet not accounted for VAT. Hope someone can help me.
You can only claim vat once you have actual invoice. Monthly DD for electricity should be tagged as on account payment to electricty suppliers, once you book the actual invoice it would take care of vat and expense in P&l. You can then log payment against invoice using on account balance
Thanks very much I understand how to do that for the payments for January - March but how do I account for the December portion which falls to my previous accounting year?
Can you also advise how to record the payments on account what is the correct way of recording them?
You need to record Accrual for previous period based on net value related to that period through journal and reverse journal in new accounting period before recording actual invoice
On account payment can be tagged from bank, click tag> payment to supplier>Pay down multiple purchases or assign to a supplier account>Allocate to Supplier
Thanks very much that has worked a treat.