Hi,
I run my own little business writing software services, and manage my own accounts. I recently bought a new piece of equipment, but I actually bought discounted shop vouchers and then used the vouchers to purchase the item. It saved me about 6% on the item cost.
However, I now don't understand how to properly declare the VAT. The vouchers sold to me don't appear to have a VAT component (I'm asking the vendor to clarify), and I have a shop receipt for the item for the full amount, including a VAT number. Let me explain with the numbers:
I paid £1880 for £2000 worth of vouchers.
I bought a £2000 item from the shop with the vouchers.
The shop receipt states I paid £2000 (therefore £333.33 VAT)
As I only paid £1880 for the vouchers I assume I can only declare £313.33 of VAT.
I don't have a VAT receipt for the vouchers so have no proof I paid £313.33 in VAT.
I do have a VAT shop receipt so I can determine the £333.33 VAT component from them.
Can somebody please clarify what I'm supposed to declare here?
Related: On my asset register, I assume I can put the item down as worth £2000, despite having paid less for it?
I run my own little business writing software services, and manage my own accounts. I recently bought a new piece of equipment, but I actually bought discounted shop vouchers and then used the vouchers to purchase the item. It saved me about 6% on the item cost.
However, I now don't understand how to properly declare the VAT. The vouchers sold to me don't appear to have a VAT component (I'm asking the vendor to clarify), and I have a shop receipt for the item for the full amount, including a VAT number. Let me explain with the numbers:
I paid £1880 for £2000 worth of vouchers.
I bought a £2000 item from the shop with the vouchers.
The shop receipt states I paid £2000 (therefore £333.33 VAT)
As I only paid £1880 for the vouchers I assume I can only declare £313.33 of VAT.
I don't have a VAT receipt for the vouchers so have no proof I paid £313.33 in VAT.
I do have a VAT shop receipt so I can determine the £333.33 VAT component from them.
Can somebody please clarify what I'm supposed to declare here?
Related: On my asset register, I assume I can put the item down as worth £2000, despite having paid less for it?