Just had hmrc vat depot onto me about a vat inspection of a clients records of which I have submitted the first vat return of on cash accounting but the info i have sent them is the vat return download of all the transactions in that vat period.They are saying it is incomplete records due to the download is showing the accrual method of vat accounting and not cash accounting as i have ticked on software so they are saying your software is not fit for purpose.Please can you help me out here i can see what they are saying say invoice has been issued on 31.10.2014 but paid on two separate dates 03.11.2014 and 23.12.2014 the download is coming up and saying the invoice was paid on 31.10.2014 when it wasn’t it was paid on 2 separate dates so invoice is 396.00 but 200 got paid on 03.011.2014 then the other payment on 23.012.2014 so these should come up on the download as these dates not 31.10.2014.
Can you help other wise i will have to re do all this work for a year on another piece of software.account number -6131461447-snap on tools qf00168 is the invoice ref and 108.could you look into this problem I have.Thanks
In the backing report for any VAT return (cash or accrual) QuickFile will show the invoice date, however for cash accounting method the calculations are always based on when any associated invoices were paid.
If I look at the VAT return 01/07/2015 to 31/08/2015 this was indeed calculated on a cash basis, this is indicated at the top of the CSV report.
When you file your first return QuickFile will bring forward any earlier entries beyond the start date (in the case of this account 01/10/2014). All payments attributed to #QF00168 occured after the start date and were brought forward to the first return.
I don’t see any problem with the VAT calcs for that return, you could always drill down on the payment list for that invoice and provide a detailed breakdown of the payment schedule if required.
the vat man is saying that on this transaction it should show £200 paid on 05.11.2013 and then 23.12.2014 another £200 which was allocated to 108 and 168 invoices they are saying it shows accrual accounting and not cash accounting.They are saying that its taken the invoice date of which is wrong it should take the payment dates as its cash accounting.I have added this purchases in as they are capital allowances and we want to reclaim the vat back on pre vat period.do you understand what I mean.
Yes I understand what you’re saying here. The VAT backing report is a summary that will group together VAT paid/reclaimed against invoices, it may need to be supplemented with additional information in your account if HMRC wish to query specific items.
Looking at #QF00168 you can drill down on the payments from the following link.
QuickFile will then show all payments linked (in full/part) to that invoice.
If you go into each payment receipt it will give you the amounts allocated from each payment to the invoice.
