Can anyone help with this problem that I have?
I am the Bookkeeper for a Letting Agency. I have set the tenants up as my Customers and the Landlords as my Suppliers. Each month I import all the tenants rent as SI's and PI's to the Landlords with PC's as our commission. I then send a remittance out to the landlords with the payments made to them. This has always worked well - until now !
I have just had to register for VAT and, for the life of me, I cannot work out how to account for this.
As the rent is VAT exempt it is only VAT on the commission that I have to charge.
If I put the VAT on the SI's then the tenants look like they have to pay too much rent. Their rent should not change but if I put it on the PC for our commission then the VAT will go into the Purchase Tax Account and not the Sales Tax Account, which it should be.
Also the remittances that I now send does not show the breakdown of Net & VAT and the Landlords will need to see this for their returns. There are far too many remittances being sent to be able to manually create a remittance for each one.
Anyone got any ideas to save me another sleepless night?
PS I am using Sage to do my accounts