SageForum for UK versions of Sage 50- Help and support.

Hi, we have accidentally claimed input VAT of 100% on leased vehicle payments for over two years!

I understand that vehicles which are used for business and personal can only have 50% of the VAT reclaimed.

How do I best fix this?

To be clear this is on multiple vehicles for nearly 2 years with monthly repayments.
Can I fix this in one entry per vehicle or do I need to credit all of the invoices (even prior year ones) and then put them back on (in the current period) with the correct VAT?

Thanks

You need to correct the whole thing for all years.

I would put on a VAT credit note to reverse the incorrect invoices then put on the corrected invoice.

Pay the two against each other to cancel them off on the account.

At the next return the transactions will be picked up and the VAT will right itself.

Note this will not work if you are on cash accounting.

Awesome, thanks for the help Bruce... much appreciated!