Allocating a VAT payment via insurance claim

Hi, Unfortunately we recently had to make a business insurance claim. As the insured, we are liable for paying the VAT payable. Never come across this before and just wondered the best way of adding this onto QF so it will also credit our VAT amount by the time it is due for submittion.

I had a couple of these type of things a few years back, where the supplier invoiced me for just the VAT element of the costs and the insurance paid the net. The way I recorded it in QuickFile was a purchase with two lines, one for the net value at 20% VAT (so five times the VAT amount in the net column), then a second line for minus that same net, at 0% VAT, leaving the invoice total as just the vat with a zero net. I put “Less: net paid by insurance” as the negative line description.

Can I check, so you entered the ‘invoice’ from the insurance company as you would do for a new supplier etc? As I were going to just make the payment allocate when needing tagged and then amend the VAT return side of it when I submit the return for this quarter.

In my case I had an explicit invoice from the supplier (rather than the insurer) that stated “this is how much the net was, we want you to pay just the VAT, we will bill the insurance company separately for the net”. So I treated it as a normal supplier purchase, just with a zero net value. I gather this is pretty normal in my case (paying the VAT on fees charged by the insurer-appointed solicitors) but it might work differently for other kinds of supplies.

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