How to process a VAT REFUND and Directors Loan ???

[Chris Barnes]

Hi.

I am using Sage Line 50 Financial Controller V11 on Windows Server 2003.

I have had a VAT refund receipt that has been paid directly into my business bank account. What is the correct way to process this receipt? I did try entering a bank receipt from the bank/receipt window and using the vat account. Although accepted, when I did a vat return for the following quarter, the vat refund appeared to be added to the sales figure on the vat return form ???

I am obviously not doing the vat refund correctly, so could you shed some light on how I should do a vat refund properly. As you have probably guessed I am a business owner and not an accountant by any stretch of the imagination.

One other quick question.
How should I process a director's loan within Sage? i.e. Money that I have transferred into my business account for the use withing the business. A bank receipt adds the value to vat return sales figure. Any help desperately needed.

Thanks in advance for any ideas and help offered.javascript:emoticon(':D')
Very Happy

Regards
Chris

[brucedenney]

Problem 1

Payments and receipts should be made against the VAT Liability account (2202) they should be tax code t9 and have no VAT element just a net amount.

Problem 2

A bank receipt will not add to the VAT return if you use VAT code T9 (Outside the scope of VAT)

[brucedenney]

this page might also be helpful.

http://support.makingithappen.co.uk/what_vat_code.htm

[Chris Barnes]

Thanks Bruce for all your help.
Much Appreciated

Regard
Chris