Corporation tax implications of VAT registration

In current year accounts you need to adjust figures for expenses and income, make net of vat for last year end by calculating vat reclaimable on expenses and payable on income

Entries would be based on last year’s accounts

Dr Vat a/c
Cr Expenses accounts

Dr Sales
Cr Vat

Any balance on vat account would be reported in next vat return, any corporation tax adjustment will be automatically accounted for this year.

You would need to adjust R&D relief figure for last year though