The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Business Discount/dicount on VAT??
Post Info TOPIC: Business Discount/dicount on VAT??
JanineE


Member

Status: Offline
Posts: 9
Date:
Business Discount/dicount on VAT??
Permalink Closed

Hi,

My client (Sole Trader) Vat Registered, purchased a new computer/keyboard/trackpad et etc  paying with her credit card.

The receipt shows the unit price of the item and then shows a business discount of 5% and vat discount. The receipt looks like this

eg  Unit price                         Vat                                Qty
      
       1275.00                      255.00                           1530.00

Business Dis                  Vat Discount                  Total Discount
Vat ex Discount
(63.75)                              (12.75)                               (76.50)


Do i show this discount or just taking off the discount to reduce the cost??

Thanks in advance

Janine

__________________
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink Closed

The invoice value, the asset value and the VAT should all be entered net of the discount.

So the assets are £1211.25, VAT £242.25, and the invoice/ amount paid should be 1453.50

Bill



__________________

 

 
gbm


Guru

Status: Offline
Posts: 896
Date:
Permalink Closed

Hi Janine,

Assuming the amount paid was £1,453.50, I think you should just enter:

Net £1,211.25
VAT £242.25
Gross £1,453.50


__________________

 

Regards,
Nick

Website: www.gbmaccounts.co.uk
Twitter

Factsheet | Starting a Business

 
MarkS


Expert

Status: Offline
Posts: 1501
Date:
Permalink Closed

Hi Janine

Agree with both Nick and Bill above.

MarkS

__________________

Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
JanineE


Member

Status: Offline
Posts: 9
Date:
Permalink Closed

Wella wrote:

The invoice value, the asset value and the VAT should all be entered net of the discount.

So the assets are £1211.25, VAT £242.25, and the invoice/ amount paid should be 1453.50

Bill


Woops, started this message once and pressed a key in error and it disappeared, you may get half a message.  As i was trying to say the receipt covered various items such as new computer,keyboard,trackpad(whatever that is) adaptor and a pf zoom sleeve?? should i post all of this to 0030.

Thanks

janine

 



__________________
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink Closed

Hi Janine

Yes, that's where I would post them @ a value of £1211.25

Bill

__________________

 

 
JanineE


Member

Status: Offline
Posts: 9
Date:
Permalink Closed

Wella wrote:

Hi Janine

Yes, that's where I would post them @ a value of £1211.25

Bill


Thanks very much

Janine

 



__________________
semsley


Guru

Status: Offline
Posts: 1329
Date:
Permalink Closed

As they came as a total package I agree - capitalise them all. However, if the minor items are bought as replacements then expense them.

-- Edited by semsley on Wednesday 9th of February 2011 11:28:20 PM

__________________

Advice from beyond the grave!!!

E&OE
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Business Discount/dicount on VAT??
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About