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!
- How much to charge for Ltd company accounts ? 571 13
- Vat threshold issues 101 2
- Growing pains 357 7
- Does Freeholder have to be director of our RTM Company? 236 14
- Joining the flat rate scheme retrospectively 71 1
- Consequential loss claim 117 3
- Residents Association Corp Tax 190 5
- ATT Annual Return Problems 117 2
- what is classed as investment under other fixed assets? 107 1
- Is a Mercedes Vito a van for tax purposes? 336 5
- private to company car? 193 4
- HMRC Penalties - are they enforceable? 955 34
- Wages paid into another persons bank account 583 10
- Buy to let allowable interest 150 2
- We accountants are not the only ones!! 231 1
- Partner with an IVA 172 5
- Your fondest calculator memories 597 26
- Goodwill Valuation Prior to April 2002, with the intention of selling on due to personal changes 420 11
- Has been asked before but help needed 318 7
- Anyone having problems with IRIS OpenSpace? 240 6
- DTR : TIOPA 2010 Section 42 457
- CTA study material 418
- Sect 102 TMA 1970 303
- Sage Forecasting - Print filename 284
- Pre incorp expenses 277
- Relief on French Tax Deposit? 246
- Anyone have clients that use Pay4Later to offer customers credit? 235
- Slight twist on employment related securities 210
- How to claim additional losses after mistake in CT return 183
- What is the tax position if I am working overseas but via a UK agency? 177