I have looked at various answers regarding the 50% vat restriction on leased vehicles available for private use but cannot find something that produces the correct amount of vat to reclaim whilst also allowing the correct value of purchases. A method of entering on two lines appeared to be the answer but results in only half the correct value of purchase for that entry.
Any help greatly appreciated
Thanks
David
How are you entering it? If you want to record the full amount but only reclaim half the vat then you’d enter it as one line for half the net at 20% VAT, and one line with the other half of the gross amount in the net column and “no VAT”. This would record the full net plus half the vat as the expense code and the other half of the vat as reclaimable.
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Many thanks Ian, I was almost there just a bit confused.
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