VAT on Overdraft Renewal fee

[The Secretary]

Hello

Can you clarify for me please. Using SAGE 50,

1) Is a renewal fee for an overdraft facility T2 Exempt
2) Is bank interest paid on the said overdraft T2 Exempt

Many thanks

[brucedenney]

The following items do not have VAT charged on them and therefore there is no VAT to reclaim: train tickets, insurance, stamps at a post office, most books, bank charges, interest, salaries, any purchases from a non-VAT registered person or business.

These all should be using the code T2