I cannot get HMRC to accept my VAT return which is now due

[saint]

I get the following message even though all relevant sales have been entered in my sole trader account

We’re having a problem preparing your VAT Return

Error: Under the Making Tax Digital rules VAT returns should be supported by accounting records. This VAT return appears to consist only of adjustments and cannot be submitted to HMRC. If you prefer to submit your return from an Excel document then please use the VAT bridging module instead.

[ian_roberts]

The error message suggests you have not entered “all relevant sales” into QuickFile - rather you’ve simply tried to enter the box totals manually into the return form as adjustments. This is not allowed under the Making Tax Digital rules; your sales and purchase records for VAT purposes at least must be kept in software of some kind, and there must be an unbroken chain of “digital links” from those initial electronic records through the VAT return box calculations to the submitted return, with no manual transcription of numbers at any stage.

There are two ways to meet this requirement using QuickFile, either

• use QuickFile as your main record keeping software, the primary source for your sales invoices and purchase records, and let QuickFile calculate and submit your returns based on those, or
• use some other software to create your invoices and calculate your VAT return boxes, export the completed return from that software in some sort of spreadsheet format and upload that spreadsheet to QuickFile in “bridging” mode for submission to HMRC.

There is no longer any option to calculate your return by hand and just enter totals into a form - the calculations must be done by your software directly from your electronic records and any transfer of data between different software systems must be by export and import, not manual typing or copy and paste.

[saint]

Thank you for this very helpful reply Ian. I did enter the numbers manually into my return and this has worked in the past. Given your latest advice, I can confirm all my invoices relevant to the VAT period are entered in my sales account ledger in Quickfile. They are all green and showed as paid. I cannot see how to move them electronically into the VAT return form that I downloaded from HMRC. That is why I entered the numbers in manually. How can I achieve an autofill from Quickfile?

[ian_roberts]

Are you on cash accounting? If so, do the payment dates (not the invoice dates) fall within the quarter you’re trying to file? In cash accounting it’s the date of payment that decides which quarter an invoice belongs to, not the date on the invoice itself. If your QuickFile account is configured for cash accounting but you’re actually intending to use accrual then you can change this in the account settings section.

If this isn’t the culprit, check the VAT start date in your QuickFile VAT settings - this date is the earliest that QuickFile will look for items to include in any VAT return.

If none of this fixes it then we’ll have to wait for one of the QuickFile support team to pick it up and have a look at your account in their back end.

[saint]

Dear Ian,
I cannot thank you enough for your helpful support. I was getting quite stressed out with the 7 Jan looming. I followed your instructions and found that Quickfile allocates the date you are using it unless overridden. My invoice dares were therefore all wrong and this was reflected in the bank statement. Once I resolved this the VAT Return Auto-generated.

Many, many Thanks