Trying the demo as MYOB replacement, loads of questions - here's one!

I'm VAT registered, I pay the VAT when I an paid (cash accounting).

VAT Treatment can be "Out of Scope" and I assume that's to be used for "Drawings". However if I have a transaction which has to be split business and personal expenses (like a phone bill) I have to set VAT to "...from UK Supplier" and the rate on the Drawings 0%. In MYOB I'd use "N/A" but Solar wants a figure.

So some of my Drawings will be Out of Scope while others 0%. This may amount to the same thing, but a VAT inspector may want to know about the 0% transactions.

Am I correct regarding 'out of scope'? Should I just forget that and use 0% for all my Drawings?

Thank you

Hi David,

Where part of your payment is out of scope and part falls under normal VAT rules, you will need to record two separate transactions in Solar Accounts with different VAT Treatment values. In this way the drawings will always be treated as 'Out of Scope'.

Regards,

I also have the problem of having invoices which contain both business and non-business items. If you ever sort this out, can you let me know. Many thanks.