Inputting VAT higher than 20%

Hi This is an unusual one. My business has been awarded a grant by the local council to buy a new E-bike. As we are registered for VAT we have to pay the VAT on the whole sum even though we will only pay a fraction of the cost. There doesn’t seem to be anyway I can put the VAT higher than 20%.
The total is around £5000 our contribution is around £500 the VAT is around £800. So I have an invoice from the council for around £1300 of which £800 is VAT. Hope I have explained that clearly.
Is this possible it quickfile.
Thanks for your help

You’d have to enter it as two lines, one plus and one minus (I’ve adjusted the numbers for this example to make the VAT numbers simpler):

  • £4,200 for the e-bike at 20% VAT (£840 VAT)
  • -£3,700 for the grant at 0% VAT

This would give a net of £500 and VAT of £840.

But check with your accountant exactly how this is supposed to be recorded in your books - are you supposed to book the whole list price of the bike as an asset and treat the grant as income, or do you just record the asset at the grant-reduced value, and for VAT purposes do you put the whole value into box 7 or just the value after deducting the grant. I’m not an accountant so I don’t know the answer to that.

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