How is VAT treated in staff expenses

[Gavin_Smith]

Hi Quickfile,

For staff expenses we set up a supplier called “staff name- non fuel” and then create purchase orders for each expense and upload the receipt to it.

To pay this we would normally tag the bank account transfer as a payment to that staff member. We would go to the supplier account and pay each purchase order using supplier credit.

How does quickfile treat the VAT paid by the company? When we transfer the money from the bank to the supplier credit we are asked for the level of VAT. Not all these expenses have VAT e.g. train tickets. So if we put down 20% then that would not be correct.

Recently I tried tagging multiple transactions from the bank tagging page, but could only assign money to half the transactions before the list length was maxed out. This left around £2000 left to tag and around £2000 in credit on the supllier account. In this case I was not asked to give a % VAT to this credit. How has quickfile treated VAT in this case? Is it 0,5 or 20%?

The image below shows the tagging screen from the bank with a list of PO and the amount unallocated

Kind Regards

Gavin

[QFMathew]

@Gavin_Smith

How does quickfile treat the VAT paid by the company? When we transfer the money from the bank to the supplier credit we are asked for the level of VAT. Not all these expenses have VAT e.g. train tickets. So if we put down 20% then that would not be correct.

It sounds like you’re set up for cash accounting. So in the first instance, you would need to specify the VAT rate when you tag it as paid for it to show up on your VAT return. If you enter this at 20% for example, and it’s allocated to an invoice which is 0%, then this is adjusted and shown as such as on your next return. However, I would advise you always check the backing figures for your return to be 100% sure. Of course, we’re more than happy to answer queries relating to specific returns if needed.

@Gavin_Smith

In this case I was not asked to give a % VAT to this credit. How has quickfile treated VAT in this case? Is it 0,5 or 20%?

I’m almost certain this is 20%, but will double check and confirm shortly.

[Edit]
Just to confirm that the second point about is correct. It will assume 20%. If it’s later tagged to an invoice with a different rate, it will recalculate that on your return for you.