Recording VAT input tax on purchases (Flat Rate)


I have a quick question regarding imputing the VAT on a purchase.

The bill consists of 4 items. One of which is zero rated.

The only way the VAT column shows is if I tick “Allow VAT to be reclaimed on this purchase” As it is well below £2K, this is incorrect.

According to the help file, ( it says “The VAT columns on the purchase entry form are not available and all purchases are entered gross without VAT.”

If I understand the above correctly, I should NOT add VAT to the line item(s). So how should I add the VAT.

Many thanks


you need to record expenses inclusive of vat. i.e if your expense is 100+vat then its should have 120 in net and gross column with zero in vat column