Help required please
I am trying to fathom something out and am having difficulty in doing so relating to submitting an online VAT return.
I have ‘set up’ an account with direct feeds from our bank account, plus also an additional feed from our credit card (American Express). The Amex is used extensively for various purchases, some VAT, some non-VAT, and some mixed VAT, i.e. food shopping where some items are ‘VATable’ and some are ‘non-VATable’, but with the total being charged to the Amex card. Therefore, the total charge is shown on the Amex banking feed.
The questions I have are:
When Amex take the monthly direct debit out from our current account (shown on the banking feed from our bank), how do I show the individual payments from the Amex banking feed on our current account banking feed, allowing for a refund of VAT on the online VAT return, without affecting the balance on the current account feed?
Secondly, with some items paid for on the Amex card, how do I separate the VAT payable (therefore, being able to claim the VAT back) items from the total figure charged on a mixed VATable and non-VATable purchase and show this on the current account feed without affecting the balance?
Basically, I am trying to ensure that we pay the correct amount of VAT, but also claim correct amount back as well
Any advice on this would be really helpful as it all seems very complicated!