Employee expenses

BarbaraK

Hi,

Could I please have some help? I work in Accounts for Company that pays employee business expenses through Payroll. How I should reclaim and record VAT from these expenses on Sage 50 Accounts? Unfortunately, there is no one who can help me to resolve it in here.

Your help will be much appreciated.

Neillaw

That would depend on how you treat the payment through payroll, if you pay and employee an extra £50 for expenses does your payroll automatically post this to the expense account if so you would need to journal the vat from that account to your vat control account. The employee should have already split down the vat from their attached invoice.
If not and you are required to journal this manually then process the net amounts to the P&L and vat to the vat account.