Forum

• # 113769
• Thu 08 Sep 2016 09:04 AM

Hi All! Im after some advice on tax codes please?!

I've recently taken over the accounts for someone going on maternity leave. I've got myself a little baffled by one of the entries she's been making......

The company bought a second hand van for the business last year, they paid a deposit and are paying off the remaining amount in monthly installments. The transactions that have been entered in to Sage (50) so far are as Bank Payments, nominal code 0050, tax code T1?

Can someone tell me if this is right? Is it not classed as a loan to the business?

Many Thanks

Gemma

• 
  Quote
  

• # 113776
• Fri 09 Sep 2016 08:15 PM

Hi Gemma,

You are right, if HP or a loan then monthly bank payments would be cr bank, dr long term liability account and vat code T9 used. Maybe if Lease, cr bank, dr a profit & loss account. It would be the original purchase that would be entered to 0050 if the company buying it rather than leasing it.

Dave

• 
  Quote
  

• # 113785
• Mon 12 Sep 2016 10:16 AM

Hi Dave,

Thank you very much for your help!

The entries go right back to when the van was purchased in Dec 2014, do you know what the implications will be with regards to VAT and how on earth i rectify it on Sage?!!

Thanks

Gemma

• 
  Quote