Invoice adjustment during transition from flat rate to cash accounting VAT

Accounting
1

Hi,

I wonder if someone could advise the best way to record the following in QF:

20/03/2017: Invoice raised under flat rate
01/04/2017: moved to cash accounting
19/04/2017: invoice paid

The VAT payment on this invoice is due in my 01/04 to 30/06 VAT return, I need to reflect the fact that my output VAT is 14.5% on this one invoice. Is it just a case of making an adjustment on the VAT return?

TIA,

W.

2

As the payment was made after moving off the flat rate scheme onto regular cash accounting, I would submit this with standard VAT (20%) declared. In fact you don’t need to change the original invoice as it will already be marked up for your client with 20% VAT.

This is my understanding of the situation, although I would certainly double check this with HMRC or your accountant.

3

Hi Glenn,

My accountant advised me of the difference between the “time of supply” and “data of invoice” and he has already submitted the VAT return to HMRC. I’m just aligning QF to what he has done.

Thanks

W.

4

OK understood!

Yes, if the VAT return hasn’t been committed on QuickFile then you can adjust the relevant boxes and hit submit to lock down the transactions and create the relevant journals.