Personal Account for Supplies

Accounting
1

Dear Support,

Our business have been waiting for a business banking account for some time now, in the meantime I have used a personal banking account to pay for supplies for our business.

How would I go about reclaiming VAT for these supplies considering I have used a personal banking account?

Thanks

2

Hi @Callum48

Are you a sole trader or a limited company? I’m assuming you’re also VAT registered and have that set up on QuickFile?

3

We are a limited company and yes we are VAT registered

4

Perfect - thanks! :slight_smile:

You would create the purchase invoice as normal, including any VAT. This way the system will pick up any VAT (whether you are on accrual or cash accounting) so you can complete your VAT return.

As you’ve paid from your own pocket rather than the business’, you would then update the invoice to be paid in full using the Log Payment button, and selecting the Director’s Loan Account (DLA).

This will show on your account as the DLA being overdrawn (e.g. a balance of -£50.00). What this then means is the business owes the director money. When the company pays them back, tag the money out transaction on the current account as a transfer to the DLA, and everything should balance again.

I hope that helps?