I know that I can claim VAT back for costs incurred before incorporation, but I’m unsure how Quickfile will know to include them in my first VAT return. My first VAT period has just ended and runs from 01/11 to 30/11.
I know that I am supposed to record all expenses incurred prior to incorporation on the date of incorporation, does this mean that as long as my date of incorporation falls within my current VAT accounting period (Aug - Nov) that QF will include those expenses when doing my VAT return?
TIA
Hello @JoeNinety
Your first vat return will pick up all invoices entered from the Vat filing start date (Reports > Vat Returns > Settings) up to the end of your first period.
- Enter your expense invoices with the correct dates.
- Ensure you vat filing start date is set to a date prior to the first invoice
- Run the return for the first period
You could also possibly enter the pre incorporation expenses as manual adjustment on the return.
(Check with your accountant if it is ok to do this as I am not a registered accountant nor bookkeeper)
We’re in a similar position to @JoeNinety. We are on the Flat Rate VAT scheme - VAT registration began 1/12/22 - and have some large capital purchase invoices pre-dating VAT registration on which we are entitled to reclaim the VAT. I cannot see how to get QuickFile to pull these in correctly. If I keep the VAT start date at 1/12/22, it ignores them. If I set the VAT start date to before the date of the first invoice I want to include, it includes those invoices but QuickFile then wants me to pay Flat Rate VAT on takings prior to VAT registration. I can’t see how to include one but not the other so the suggestion doesn’t solve this for us. I assume a manual adjustment is actually the only correct solution - though I have no idea how to do that! It’s obviously outside the scope of QuickFile but is perhaps something that needs to be considered as a feature request.
Hello @The_Toaster
I assume a manual adjustment is actually the only correct solution - though I have no idea how to do that!
A manual adjustment would be the way to go with this and is the reason you can adjust the vat return.
I would however recommend you consult your accountant for tailored professional advice before doing so as we are not registered accountants nor bookkeepers.
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Are you talking about pre-incorporation or pre-registration? Pre-incorporation expenses are not strictly company expenses, so should be entered on the first day of incorporation as effectively directors’ expenses with a credit to the director’s loan account. The VAT return should then pick them up, assuming it covers the date of incorporation.
If you mean ore-registration expenses, then these need to be included by way of an adjustment to the VAT return, as you can claim for expenses in prior periods.
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