I am completing the first VAT return within QuickFile but there is a complication which I’m not sure how to handle.
HMRC have a VAT registration date set of the 1st March 2023 but this was an error which we have written to them to correct. The correct start date is the 6th April 2023. I have set the correct date in QuickFile within the VAT settings.
Our accountant also had to file a zero return for the last period as HMRC hadn’t corrected the incorrect date so a zero return had to be filed to prevent an automatic penalty.
Our VAT return is now pending which covers the correct first period. However when I create the return in QuickFile, it’s dragging in invoices and purchases prior to the 6th April 2023. I thought that by setting the correct VAT registration date in QuickFile it would only bring in invoices and purchases from this date.
Can you advise why it’s doing this and how to correct it? I have linked my HMRC account within QuickFile and perhaps that’s why it’s dragging these, what it thinks, are unaccounted for invoices from the previous period?
I also have a large refund of VAT due for assets/stock purchased prior to VAT registration which I believe I make an adjustment for on the return within QuickFile - I’ve already created a file with all invoice data for this VAT refund and uploaded into QuickFile for future reference.
UPDATE:
I think I’ve spotted the reason for these invoices being brought in. As we are cash accounting it’s the payment date which matters not the invoice date! It seems the purchase invoices which have dates prior to the 6th April 2023 weren’t actually paid out of our bank account until after the 6th April.
I was going to delete the post but thought it might be better left as others in the same boat might realise why they are getting the same result!
