Most of my sales are 0%vat. One or two occasional items attract vat.
Payments that come in from Stripe go to my bank account.
tagging is a simple job for most sales.
However I have looked at one item that is a payment from stripe for £120ish.
£90 is for zero rated product. £30 is for 20% rated.
The only way i can see to deal with this is to manually to create an invoice with two line entries - one for the zero rated and one for the 20% rated and then tag the bank account payment to it from the bank feed.
The invoice is correct with £5 as the amount of vat.
However, when i go to the vat calculation it is showing a figure (£20ish) for vat ie as though all sales on the invoice are subject to vat.
Hello @adininja
It is because you are on cash accounting and the payment has preceded the invoice.
On cash accounting the Payment dates (the tax point) are used rather than the invoice dates.
The payment is logged in December at 20% vat as there was not invoice at that point.
The invoice is dated February and has the vat split listed.
If you run the 1 Dec 2023 - 31 Jan 2024 only the payment is picked up
When the 1 Feb 2024 - 30 Apr 2024 return is run the values are corrected as the vat breakdown is available
Hope that helps.
Many thanks.
So the answer from what I understand is to always create the invoice for the date the payment is received.
Hello @adininja
That would avoid anomalies like this but sometimes it doesn’t always happen like that.
There is redundancy built in to correct it on the next return if required.
Its more of an awareness thing, as long as you are aware of what is happening.
So, just checking
If a payment goes out of bank or credit card normally i can just tag it.
However if the amount is for a mixed payment part of which is vatable and part zero rated I have to manually create an invoice with different lines for standard rate and zero rate?
The workflow for creating a new invoice at the point of tagging a bank transaction is deliberately streamlined for the most common simple case, so it only supports creating one-line invoices. But there’s nothing to stop you creating a one-line invoice through the tagging process, then clicking through to the created invoice and post-editing it to split it into two lines (as long as the overall total remains correct - you’d probably want to tick the box to enter line totals inclusive of VAT so you don’t have to work out the split calculation yourself).
Great - yes hadnt seen i could do that thx
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