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Hi all, I'm wondering if someone could please lend a hand ?

You are told that UK purchases included a van for £18,950 plus VAT and a company car for £27,825 plus VAT. The related VAT for both purchases is included in the VAT account figure.

Calculate the figure for Box 4 of the VAT return - VAT reclaimed in purchases and other inputs

I've correctly identified that VAT on the company car is not reclaimable .

So i do : 27825*0.20 = 5565

And then I do = Whatever purchases are in the VAT account - 5565

And I get the correct answer. However the next question is:

Calculate the figure for Box 7 of the VAT return - Total value of purchases and all other inputs

Now i'm assuming that because the VAT on the company car is non reclaimable, and that i've taken it out of the VAT account so to speak. It needs to go somewhere, so I put it in the Purchases. But when I check the answers, box 7 doesn't take that 5565 vat into consideration.

Why is that ? and where does the non reclaimable company car VAT go once its subtracted out of the VAT account ?