We pay a direct debit for VAT every month, filing a return once a year.
I have run our VAT return but all the direct debit payments we have made have not been taken off.
It is showing we owe much more VAT than we actually.
I have posted the DD’s to the VAT liability account ( 2202), is this correct?
Thank you
Hi @carly_clark
It sounds as though you are on the right lines so far. So I’m not sure where the error is creeping in.
When you say:
Can I just ask where you are comparing the figures? Are you checking the Chart of Accounts? And if so, have you made sure the date range is correct?
sorry I meant than we actually owe.
it is showing sales less purchases but not taking off all the amounts we have paid every month.
thank you
I will double check the date ranges.
I’m just wondering that maybe the figure is correct and when it imports to HMRC, they will take our payments from our account to work out how much is actually due to be paid.
Vat returns do not show nor take in to account vat paid either in advance or not. It will only show the liability. Your balance sheet will show any vat outstanding or in credit.
Hmrc will take the payments on account and deduct it from what’s owed on the vat return.
perfect, thank you very much.
First time with MTD so want to make sure the figure is correct!
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