Vat for compensation

carolyn
carolyn Registered Posts: 29 Regular contributor ⭐
in VAT
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

Comments

  • duncan123
    duncan123 Registered Posts: 15 New contributor 🐸
    Hi, we are building an automated tool to help businesses to identify both historical VAT risks and missed opportunities to claim VAT. It will sit above Xero, Quickbooks and SAGE and integrate seamlessly whilst keeping your data totally secure. Kind of like a 'quick VAT health check.' Just wondering if you'd find something like this useful? Thanks

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