I’ve just set up a new account and, whilst not yet VAT registered, I want to set up a supplier registered for VAT. This doesn’t appear as an option in the supplier set up and so my purchases also do not have VAT applied. How do I change this? Many thanks
You can’t set up the VAT as it has no relevance in terms of accounting. If you’re not VAT registered, you don’t need to record it (and shouldn’t)
Just enter the gross prices (e.g. £10 with £2 VAT, enter £12)
Hi. As a start up business, I am currently in the process of becoming VAT registered and am fairly sure I can back date VAT purchases from before registration. Therefore I need to breakdown all purchase into VAT and cost.
In that case, it may be better for someone with a bit more knowledge to reply. I’m not VAT registered so not going to be able to help - sorry!
Only capital purchases can be reclaimed, you can’t reclaim stock items and other cost of sales. So usually the list of items eligible for reclaim is quite small. There’s more info on this here.
When you switch on VAT accounting in QuickFile it will allow you to itemise VAT on sales and purchases. Whatever capital purchases you want to reclaim I would just enter without VAT and attach a receipt (which you will need later anyway), you can even tag them to a project code making it easier to recall and total them later.
For the start up business I have heavy service costs (franchise fees, training, accountants, etc) on which I intend to reclaim VAT, so will be useful to track these invoices from the start. How do I go about applying the project code as a way of tracking this? Later on, when VAT registered, would I simply delete these purchases from the system and then re-record them with the VAT itemised?
Thanks for your help with this!
You can apply a project tag to an existing invoice like this:
You can then see a total for all tagged items in the project overview screen.
For VAT reclaims I’d also recommend attaching a scan of the receipt to the purchase invoice.
That’s really useful thank you.
when VAT registered, would I simply delete these purchases from the system and then re-record them with the VAT itemised?
You could edit the invoices and change the VAT amounts later. But to be honest I would just make a manual adjustment to the VAT return. You have the project tag their to back the figures and as long as you also have the receipts somewhere you should be fine.
Wonderful. Thanks again for your input on this!