There are certain scenarios—such as insurance claims—where you only need to pay or receive the VAT element of a transaction rather than the net figure.
The process for entering this depends on whether you are processing an imported bank feed or entering the transaction manually.
Method 1: Imported Bank Entries (Bank Feed or File Import)
Select the appropriate Expense category (e.g., Machinery Repairs) and use a Standard Tax code.
Overwrite the Tax amount field to match the total payment amount. This will automatically adjust the net amount to £0.00.
Click Save.
Method 2: Manual Entries (Manual Bank Accounts)
Set the transaction date and enter your description.
Select the appropriate Expense category (e.g., Machinery Repairs) and use a Standard Tax code.
Enter a Net amount of £0.00.
Enter your required Tax amount.
Click Save.
How this affects your VAT Return Because this transaction consists of a VAT amount only, it will strictly affect Box 1 (Sales) or Box 4 (Purchases) on your VAT return, which will be determined by the Category selected within data entry.