Self billing help

Accounting
1

Hi, Im just trying to figure out how to enter a self billed invoiced I’ve received.

I sold my old Van, the invoice I received has the sale price, with no vat charged, less the fees, but has ‘vat on charges’ which I think I can recover from HMRC as an input tax. how do I do this??

I understand I make a ‘dummy sales invoice’ which I don’t send, but how do I recover the £20.20 ‘Vat on charges’ and show this the correct way?

thanks.

2

Hello @Jpettitt

You can record the details by having

  • One line for the element with VAT
  • A second line line (same with no VAT), but negative value

This reverses the net and leaves the vat to be picked up on the return.

3

So just checking,

Ive entered 1st line as the total sale, (no Vat)

2nd line, fees as negative value (+vat)

the invoice now shows a negative value for the vat, will the vat return pick that up?? Ive never done this before, so just making sure its correct. All the amounts are correct, so it looks like its worked.

thank you for your help, really simple when you know how!!! ha ha.

4

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