My company has two directors, both of whom pay for things out of pocket. Rather than record every little transaction, I wish to submit a monthly expense claim and and then re-imburse them from company funds.
Question 1: how to account for VAT? A typical expenses claim looks like this:
Taxi (no VAT)
Client entertaining (no VAT)
Software (VAT)
Train fare (no VAT)
Hotel accommodation for conference (VAT)
So, I need to record the VAT manually, rather than calculate 20% of the total expense claim. How do I do this?
Question 2: should I be using the Directors Loan Account for this purpose?
All these individual expenses would typically be itemised onto separate invoices, although for simplicity I suppose you could just put them all on one purchase invoice and split the individual items over multiple lines. The suppliers could then be called “Director Name 1 Expenses” and “Director Name 2 Expenses”. With the different lines you can then separate out the VAT. The invoice would get paid from the DLA account, you could even have 2 DLA accounts, one for each director.
One other consideration here is with any VATable items, you should have a copy of the VAT receipt, you can attach multiple receipt images to a single purchase invoice if needed.
Thanks Glenn, I have done as you suggested and it works.
Is there any way to copy/paste multiple items into the Purchase Invoice? Or import from CSV? I already have them input in Excel (a whole years’ worth) but can only seem to manually enter them, one by one.