Hi, my client has recently sold some scrap metal. He received a scrap metal purchase receipt. They advised him to invoice them so that they pay the VAT. I am using Sage instant accounting. Do i set them up as a 'customer' and raise an invoice for the whole amount (£239.79) and is that inclusive of VAT or is it £239.79 plus VAT?
Or do i raise an invoice for £239.79 less VAT (£199.83) with then the VAT added to total the full amount of £239.79?
And then i add the amount received (£239.79) as a T1 ? And against miscellaneous income?
He has received a couple prior to this that i've not taken this action on. Ive put them as a T9. So shall i raise another invoice for the ones not processed before?? They are in prebious quarters - how will this affect previous VAT returns?
Many thanks for your help.