Journal entries to clear bad debt write offs in the Purchase Tax Control Account

[mattmulti]

Can someone please tell me what is the right process to do this… I used the bad debt feature for the first time this year and so now on my balance sheet I have an asset in the Purchase Tax Control Account which is made up of the bad debt write offs.

I am using the flat rate scheme and I believe I can adjust my next tax return (reading this Flat Rate Scheme for small businesses (VAT Notice 733) - GOV.UK) to include this figure in box 4.

So if I do by adjusting the box in Quickfile when I file the vat return, would that place the balancing item into that control account automatically, or do I need to create some journal entries… if the latter what do I need to do to clear the purchase tax control account balance?

Thanks

[ian_roberts]

Have you tried preparing (but not yet submitting) a VAT return and looking at the export CSV? I wouldn’t be surprised if the adjustment is made automatically.

[mattmulti]

I can’t do that unfortunately - I already submitted my VAT return for this quarter (not realising that these wouldn’t get automatically included) so I have to wait another 3 months before I can prepare the next one to find out!