Freehold property purchase and VAT - can anyone help?

Good morning
I am struggling with the entries for a freehold property purchase in order to get the VAT correct. The entries have been complicated but on the advice of my accountant I entered a purchase invoice for the value plus VAT and then credited it to put it onto the mortgage account. The nominal balances are all about right now but the problem is that the purchase VAT is not being picked up on the VAT return - I guess because the purchase invoice was credited. Can anyone advise how I can get the VAT to appear in the VAT return? My accountant is very good, but not familiar with QF. The invoice and credit entries were:

Lawyer fees re mortgage -1,752.56 GBP REFUND
Seller Lawyer fees re mortgage -1,792.94 GBP REFUND
Purchase EP -172,941.82 GBP REFUND
Lawyer fees re mortgage 1,752.56 GBP CREDITED
Seller Lawyer fees re mortgage 1,792.94 GBP CREDITED
Purchase price EP 172,941.82 GBP CREDITED

Thank you in advance

@ QFMathew or @ QFSian - can you help with this at all?

Hi @EHRHG

If your accountant can advise on what entries need to be recorded (e.g. what purchases and what VAT), we can try and point you in the right direction within QuickFile.

Unfortunately, neither me nor @QFMathew are accountants, so we’re not able to advise on specifics, but we can offer general QuickFile advice.

It’s a purchase invoice for £155,000 + VAT (also plus searches, service charges and other items). But there’s also a mortgage so I issued a credit note for the total amount of the invoice (no VAT) - so I can’t really understand why the VAT from the purchase invoice isn’t coming up on the VAT return.

When entering the credit against the purchase invoice, can you not change the VAT rate to 0% and enter the gross value as the net credit amount? This should keep the input VAT on the VAT return… I think

@ LC_Hydraulics - thank you - yes, that’s what I did - so I can’t understand why the invoice isn’t appearing in the VAT return.

Hi @EHRHG

Are you on cash or accrual accounting?

@ QFMathew I’m on cash accounting.

Thanks for coming back to me.

Is the invoice (with the VAT on) paid, or still outstanding?

It’s been credited with a credit note which has the gross amount of the invoice and zero VAT, analysed to the mortgage nominal account.

Hi @EHRHG

We’ll send you a private message shortly to get some account details and take a look at this for you.

Please look for the green notification in the top right corner.

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