Mortgage expenses with VAT
Posted: 31 Aug 2016, 16:36
A client has taken a big loan from a mortgage provider to finance some development work on a property he owns. I have been using the article on the Sage website entitled "To record the purchase of a property using a mortgage in Sage Accounts" as a guide to setting up a journal to enter it.
For the fees for the company providing the Capital, i have been provided with a VAT invoice. But the Sage guide shows a debit entry under N/C 7603 (Professional Fees) for Mortgage arrangement / setup fees with a T2 tax code.
Dummy Completion Statement
N/C Details: credit Debit
2300 Mortgage amount 280,000.00 cr
7903 Set up Fees and 1 months interest) 10,000.00 dr
7604 lender's solicitors fees (inc VAT) 2,140.00 dr
7604 HMLR fees 40.00 dr
8204 no search' insurance premium 44.00 dr
1200 Cash deposited 267,776.00 dr
Totals 280,000.00 280,000.00
How do I enter it if VAT is involved in this case, in the 'lender's solicitors fees' of 2,140?
For the fees for the company providing the Capital, i have been provided with a VAT invoice. But the Sage guide shows a debit entry under N/C 7603 (Professional Fees) for Mortgage arrangement / setup fees with a T2 tax code.
Dummy Completion Statement
N/C Details: credit Debit
2300 Mortgage amount 280,000.00 cr
7903 Set up Fees and 1 months interest) 10,000.00 dr
7604 lender's solicitors fees (inc VAT) 2,140.00 dr
7604 HMLR fees 40.00 dr
8204 no search' insurance premium 44.00 dr
1200 Cash deposited 267,776.00 dr
Totals 280,000.00 280,000.00
How do I enter it if VAT is involved in this case, in the 'lender's solicitors fees' of 2,140?