I am completing my first VAT return using Quick File and wanted to ask how to log my pre-trading expenses, some of which are vatable that I would like to reclaim the VAT for.
Also, I have had some miscellaneous expenses since trading began e.g. client meetings with coffees, etc… which do not seem to be getting picked up as part of the VAT return.
I have had a look at the VAT returns guide in the knowledgebase, and as far as I can tell, it doesn’t have the answer I need! As always, your advice would be much appreciated.
Are you on cash accounting method or accrual? Also are you on the flat rate scheme?
For pre-VAT registration reclaims you would need to account for this manually. You can keep a separate table of such items and adjust the totals into the relevant boxes on the return.
OK - I am on cash accounting. So I will make the adjustments on the return for the pre-VAT registered expenses, how about the miscellaneous ones which have been incurred since VAT registration?
There is no QF number because the expense occurred via a debit card transaction and was posted directly from my bank statement which I have then just tagged under miscellaneous expenses? Is this the incorrect way of logging them?
And yes they do appear within the VAT return period.
Ah ok that explains why it’s not featuring on the VAT return. The VAT return only references invoices, posting directly to a nominal code bypasses this.
Detag and retag these items to an invoice, that should then bring it into your VAT return.