Corporation tax implications of pre-registration VAT

Accounting
1

I will be doing my first VAT filing in the next month and understand I just need to enter any of the pre-registration VAT as a manual adjustment in Box 4.

But my Query is to how this if normally handled for Corporation Tax and also adjusting Quickfile accounts.

I came across an old thread

Corporation tax implications of VAT registration - Accounting - QuickFile

that said

Is my understanding correct that Quickfile will use the Pre-registration VAT adjustment I make in BOX 4 and automatically make a posting in Quickfile for the current financial year to adjust for the VAT reclaimed and hence this would be accounted for automatically, would this then show on the trial balance so it would come out on the next CT600 submission.

Is this correct that the Pre-registration VAT would just be accounted for in the next CT600 submission. I was thinking that I would need to make CT600 adjustments for the previous years to account properly for the VAT reclaimed in the various categories of expense ,AIA, SBA

In my case, the CT600 is due before my first VAT filing, so I was unsure if

1/ the presumed pre-reg VAT should be deducted for the CT600 even though it hasn’t been claimed yet.

2/ File the CT600 with the inclusive VAT values as per Quickfile and make an amendment when the pre-reg vat has been submitted

3/If the previous CT600 filing is left unamended and its adjusted for in future years CT600 filings. Wouldn’t that leave the previously CT600 filing with claimed Corporation Tax allowances incorrect eg AIA,SBA etc. would have values with some items having vat that was later reclaimed.

2

With reference to my CT600 query, I did get some help from TinyTax from this. I must say their support has been excellent and super fast and the software has worked well with Quickfile.

You just export the Trial Balance from Quickfile and Tinytax already has the mapping template for Quickfile to populate most of the fields, ready for both CT600 and Companies house submission.

Anyway the CT600 answers regarding Pre-Registration VAT where I am filling the CT600 before submitting to claim the Pre reg VAT are

There are two clean approaches:

  1. File now, amend later-– file the CT600 on current figures (with VAT-inclusive costs), then amend after your pre-registration VAT claim is processed and your accounts updated. HMRC allows CT600 amendments within two years of the accounting period end.

  2. Accrue the recovery now-– if your accountant includes the expected pre-registration VAT recovery as a debtor in your current accounts (an amount due from HMRC), your accounts already reflect the net cost and no amendment is needed .