Sole Trader - tagging monthly overheads in bank account (phone, internet, insurance etc)

Hi. I am a Sole Trader, on the flat-rate VAT scheme, and new to QuickFile (after 5 years of lovely spreadsheets and a nice accountant). When tagging bank account items (monthly phone/broadband bills, monthly insurance payments, recurring charitable donations, etc), do these really need to be logged as ‘Payments to Supplier’ and an invoice logged for each one? Or can I tag as ‘Other purchase/expense’ without an invoice? Is there a down-side to doing it this way? I have very few outgoings that I receive invoices for (just occasional outsourcing of work to designers), and these I would definitely logged as ‘Payments to Suppliers’.
Thanks for your help!

Hi @KCMedWriter

In most circumstances I would suggest creating a purchase invoice for the payments. Although you’re on flat rate VAT, there are other benefits to consider, such as:

  • Easier to track a bank transaction to a specific purchase or supplier
  • View spend by supplier
  • View what’s owed/paid overall, or on an individual supplier
  • All the above makes it easier to track down a purchase should HMRC ever query it

That doesn’t mean every purchase has to have a purchase invoice. Some such as bank charges for example, don’t come with invoices (although you can create one if you really want to).

This topic was automatically closed after 7 days. New replies are no longer allowed.