HI, I started using Quickfile as a new user this month having completed my FY at the end of last month, so this is a new set up. I have a VAT bill resulting from the end of the last quarter which needs to be paid. How do I show this in Quickfile please as the transactions to which it relates won’t of course be in Quickfile?
Shall I just log it as a payment from the bank account as I’m paying it? I would guess that I need to attribute this to some nominal codes - apologies - non-accountant here
You need to tag this as vat payment (vat liability a/c), this should make opening vat liability zero which is coming from previous transactions in previous system as opening TB for QF
Thanks so much for the quick response. So if I understand that, I should:
Go to Banking
Select the appropriate account (Current in this instance)
Input new transaction
Make the payment
Tag that transaction as HMRC payment
Note that I haven’t as yet added the previous year’s VAT liability into QF. I guess I should do that first. Which codes should I use a Credit and Debit balancing accounts please?
When you set up your QuickFile account, what data did you input, opening balance wise? For example, did you import a trial balance of any sort? Normally the VAT liability would be imported as part of this process.
I only manually inputted the invoices outstanding at the time (clients and suppliers) and reconciled everything with the bank accounts on the 1st of the month. So I didn’t add any VAT details. I guess I need to retrospectively do that now and make the payment. So I suppose I need to know what the process and codes are for doing that please?
The liability would need to be added to 2202 VAT Liability. However you would need a balancing entry for this, often generated by a VAT return and matched up to 2200 Sales Tax Control Account (for VAT collected from sales) and 2201 Purchase Tax Control Account (for VAT paid as part of purchases).
When you tag the payment from your bank, this will be the balancing entry in 2202 which removes the liability from your balance sheet.
However, I would run it past your accountant to ensure the figures are entered correctly.
Thanks and that all makes sense. I need to make sure that I add the liability in from last year correctly before I pay it and subsequently remove the liability from the balance sheet, so I just need to know the corresponding credit and debt accounts to use for that. I’ll ask the accountant and perhaps once I have the answer I’ll post it here so that it might help someone else too…
Just an update on this one, the accountant suggested that I journal an entry to 2202 VAT Liability as a Credit and as a debit from 3200 Profit and Loss, all dated as the last day of the previous FY. It then shows on the balance sheet until paid and subsequently cleared.
