Hi All,
As a limited company on Flat Rate VAT Scheme or not registered for VAT as is currently the case, is there any reason to use supplier records & purchase invoices for overheads either directly paid by company or indirectly paid via employee expenses?
I was looking at the following two examples:
- business mileage expenses (Business mileage expense)
- use of home as office (Flat rate £4 for home office?)
The first example makes use of creating a generic supplier record to create purchase invoices to. The second example suggests tagging banking transactions directly to a nominal code.
Is there any reason why I wouldn’t choose the second example and avoid the mess of generic supplier records and tons of purchase invoices if I’m on either Flat Rate VAT Scheme or not VAT registered?
As a newbie here I’m currently working on importing legacy data so would be nice as a non accountant to get some other opinions please…
Kind regards
Justin