I manually created an entry in my business bank account on Quickfile to report the monthly fee charged by my bank for in-and-out transactions. I understand there are two ways it can be tagged, Payment to a supplier or Something else not on this list. The first way seems to essentially allow me to associate an invoice to the transaction and account for VAT if any.
I don’t have any invoice for this transaction, though as my business is VAT registered going ahead with the tag Payment to a supplier seems to be a better approach. For Quickfile users in a similar situation as I am, which VAT have you been using to report these bank charges?
I used to use “payment to a supplier” to put my monthly charges through as a purchase (at 0% VAT), mainly because my bank Santander provided a monthly PDF document summarising the fees and making a purchase meant I could attach this document via the receipt hub for reference. If your bank gives you a similar breakdown then it would make sense to do the same but if not then either method works.
Making it a zero rated purchase means the bank charges will show in box 7 on your VAT return, and I’ve seen conflicting opinions on whether or not this is correct. If you don’t want this then either mark the purchase as out of scope or go the “something not on the list” route.