Accrue for VAT on purchases?
I have started a small business and am pulling together the monthly management accounts for the Board but am coming across a number of probably very simple accounting/book keeping problems.
The first I have a dilemma over is the treatment of VAT on monthly accrued expenses, should this be recorded as follows?
1. DR P&L expense: £100
2. CR Balance sheet accruals: £120
3. DR Balance sheet VAT debtor: £20
OR should I ignore VAT as I don't have an invoice for the accrued expense?
Any thoughts would be appreciated!
- Taxi Drivers Cost of Sale 140 3
- Digita Accounts Production Advanced - general perception 65 1
- Post AAT? 702 4
- Second Limited Company 137 2
- Bookkeeping Rate of Pay 2,674 38
- How to claim relief under a Double Taxation Agreement 292 6
- Tax implication on superannuation 183 3
- What's the Barmiest Reason A Client gave you for going? 2,556 25
- GRNI - Normal Balance 90 2
- Entrepreneurs Relief, and then new company 250 3
- Portuguese Resident having a UK Limited Company 223 8
- Tax Fines - HMRC 821 13
- Is Xero payroll as rubbish as I suspect it is? 1,298 24
- VAT - Check on clients business 913 37
- Digital tax accounts - what do we expect? 501 10
- Private doctors - Ltd company vs partnership 296 8
- Probate services 372 7
- Annual to At Least Quarterly 527 20
- trading losses allowable? 761 14
- Small amount of untaxed royalties for someone outside SA 167 1