I have just created my first Flat Rate VAT return and the VAT and turnover figures are incorrect even though I have set up the period correctly in the setup.
The turnover figure for the quarter should be £21700, but QuickFile has entered £50599 into the turnover box and calculated the VAT accordingly. I cannot for the life of me work out where that turnover figure is coming from because I put in the start date for VAT as 1/4/2023 when I did the setup.
How do I correct this? I am stuck at the moment so would appreciate any suggestions.
I have taken a look at the account and I can see you have already submitted the return.
As it has been submitted already no changes can be made.
The turnover figure for the quarter should be £21700
Can I ask where this figure was from?
As you are on Cash Accounting (Flat Rate @ 14.50%) the payment dates are used to assign the invoices to the returns.
For example you have a payment on 03/04/2023 which paid and invoice (661) on 31/03/23 which has correctly been included in the return.
I am planning to submit an amendment to HMRC which can be done outside of the system. I presume I can then correct the entries in the system to ensure our accounts balance.
I may have made an error in the setup as the VAT should only be charged on invoices raised from 1st April - not those raised before the date, irrespective of their payment date.
Have I made an error in the setup? What should be changed?
I just found the error. I have changed to the accrual basis. Now I need to fix the accounts before I submit the error report to HMRC.
Am I correct in saying I need to roll back, disconnect the VAT from HMRC, regenerate the report and then reconnect to HMRC?
Then I should have the correct figures in the system, can submit an error report to HMRC and pay the correct amount - and we should then be good to go for the next period.
Whew! Should have been paying more attention but was focused on battling to get the HMRC connection to work.
Under MTD you can not submit the period twice.
I would recommend
- Leaving the return as it is (as that was what you submitted)
- Switching over for the next period
- As your vat filing start date is set to 01/04/23 all invoices will be included when you switch over
- Make a manual adjustment on your next return for the value this return so you do not double pay the vat
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