Need more, need help now?
- - - - - - - - - - - - - - - - - - pay-as-you-go support - no contract - tenth of an hour billing - expert help - fast service - no call queues
Need integration?
- - - - - - - - - - - - - - - - - - with your shipping system - website - invoicing system - crm - cms - manufacturing - order import - back to back orders..
Need a report?
- - - - - - - - - - - - - - - - - - Excel reporting that pulls data from Sage - custom layouts - layouts that change adapt to your brands and/or for drop shipping.
Want web hosting?
- - - - - - - - - - - - - - - - - - Your own domain name - email - a shop - wordpress - woo commerce - ticket systems - help desks - forums - portals

VAT ON BAD DEBTS

Bookkeeping and Management Accounting help does not have to be specific to the use of Sage 50
Post Reply
AC32
User
User
Posts: 8
Joined: 04 Jul 2013, 14:33
Sage Version: v2012 18 UK/Europe/Africa

VAT ON BAD DEBTS

Post by AC32 » 28 Aug 2014, 14:53

I must be doing something incompletely because when I write off a sales a/c bad debt, I have to post the vat portion separately and after the event.
There must be a setting somewhere that debits the bad debt control a/c and the vat control a/c?

User avatar
brucedenney
Site Admin
Site Admin
Posts: 4619
Joined: 28 Feb 2006, 09:56
Sage Version: v28 UK/Europe/Africa

Re: VAT ON BAD DEBTS

Post by brucedenney » 28 Aug 2014, 16:33

Are you on Standard VAT Accounts / Cash Accounting or a Flat rate scheme?

Assuming Standard Accounting
==========================

What you describe is normal, by default, debts are not available for Bad Debt Relief, there are a bunch of criteria that need to be met.
http://www.hmrc.gov.uk/vat/managing/rec ... -debts.htm

You need to do a separate journal to reclaim Bad Debt Relief

The Journal is from your Bad Debt to Sales Tax (assuming Sales invoice) It is T9 on the Bad Debt and T1 on the Sales Tax account.
For just about anything Sage :- Discount subscriptions, pay-as-you-go support, application integration, reports, layouts, linked excel spreadsheets, analysis or any other help making life with sage easier/less time consuming Contact me.

Post Reply

Who is online

Users browsing this forum: No registered users and 10 guests