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.
This topic was automatically closed after 7 days. New replies are no longer allowed.