Vat for compensation
My company hires a warehouse to store my goods. One day, burglars broke the gate of the warehouse and stole my goods, which cost £1,000. The warehouse keeper agreed to use the rent as compensation. The rent is £200/month. £1,000 of compensation will cover 5 months rent. So he issued five months' rents invoices, which cost £1200 inc. vat in total. At my side, Shall I treat the compensation as an income and put £200 vat into Box 1 for VAT return I am wondering if it is correct to deal with VAT in this way.
Can anyone help me. Many thanks
Can anyone help me. Many thanks
0
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