HOW TO ENTER iNSURANCE FOR PUBLIC LIABILITY PAID IN INSTALLMENTS EXEMPT FROM VAT
Have you received an “Invoice” from the Insurer for the whole year and just pay in installments ?
Yes I have an invoice the problem I have is I don’t want it to be included in my VAT report
Are you on a VAT Flat Rate Scheme ?
No I’m on cash basis
From what I understand EXEMPT Purchases still go into Box 7 on the VAT return.
I’ve never used Cash Accounting, but my undersdtanding is that the VAT Return picks up the figures from Cash Received and Cash Paid out.
This being the case you should be able to process the whole Invoice for the year as one total figure (the balance outstanding will sit in Creditors). As you pay cash out against the invoice that should be when the monthly payment is recorded on your VAT Return. Any users on Cash Basis VAT Returns, please correct me if this not the case.
Insurance is out of the scope of Vat as is wages not in an exempt category. This is why i wanted to know whether you can input it into QuickFile.
Sorry I used the wrong word (exempt) in my original post
Extract from the Goverment’s website
Exempt goods and services
There are some goods and services on which VAT is not charged](VAT rates on different goods and services - GOV.UK), including:
- insurance, finance and credit
- education and training
- fundraising events by charities
- subscriptions to membership organisations
- selling, leasing and letting of commercial land and buildings — this exemption can be waived
This shows insurance as Exempt if it is supplied within th UK.
If it is supplied outside the UK it becomes Out of Scope.
This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.