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Out of Scope VAT

I have a large number of purchases designated ‘No VAT’. They are however, personal purchases and therefore need to be ‘Out of Scope’.

I am about to file the first VAT return and need to change these. How do I do it?

If they’re not purchases related to the business then they don’t belong in QuickFile at all. If it’s a personal purchase paid for from the business bank account then it’s not a purchase but simply a “bank transfer” to the drawings account (if you’re a sole trader/partnership) or director’s loan account (if you’re a limited company, in which case you should aim to pay the company back fairly soon after as there’s tax implications for taking a loan that isn’t paid back within the financial year).

The business hasn’t bought anything, you’ve taken out (or borrowed) money from the business - which you happen to have immediately used to buy something but that fact is irrelevant from a business records perspective.

Plus it’s not “out of scope” either as that implies it was outside the UK or EU and carries no vat charge.

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