Recovering VAT from director's travel expenses
Posted: 24 Jan 2012, 18:45
I am running Sage Accounts 2011
What are the transactions needed to add a journal entry to log an employee travel expense- eg JC for £100 against 2240 and JD for £100 against 7400. This puts the expense into the overhead section but how does the company recover VAT if the expense is in the form of a VAT receipt for a road toll that is included in the travel expense.
Eg: Travel (7400) Expense logged is £100 total including £12.00 for a bridge toll on a VAT invoice - VAT to be recovered is £2.00. Normally the way is to enter the road toll separately and then pay it thru the bank - but the bank will be paying the £100 to the individual who incurred the travel expense.
What are the transactions needed to add a journal entry to log an employee travel expense- eg JC for £100 against 2240 and JD for £100 against 7400. This puts the expense into the overhead section but how does the company recover VAT if the expense is in the form of a VAT receipt for a road toll that is included in the travel expense.
Eg: Travel (7400) Expense logged is £100 total including £12.00 for a bridge toll on a VAT invoice - VAT to be recovered is £2.00. Normally the way is to enter the road toll separately and then pay it thru the bank - but the bank will be paying the £100 to the individual who incurred the travel expense.