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MTD - VAT tag the transactions

#1

Hi folks
have just started using quickfile as I will need to do the VAT the new way. I’m not computer savvy ay all & only want to use quickfile in it’s most basic way to get the next VAT return done.
On reading the VAT guide it says ‘You should also ensure that all bank transactions are tagged for the given period before submitting your return’
What happens if you NOT tag the transactions?
Will it not pull the info through from sales and purchase invoices?
Thanks
Gail

#2

If you don’t tag the transactions Quickfile has no way of knowing what these transactions are for so it cannot account for any VAT element (or if there even is any). The VAT return will calculate figures from purchases and sales invoices as these have the VAT applied where necessary upon creation.

#3

It’s not vital to have all the transactions tagged if you’re on accrual accounting, but it’s more important on cash accounting where it’s the date of payment rather than the date of invoice that matters.

#4

We are on cash accounting. I have manually marked the entries that have been paid, money in & out. Will this cause a problem when I tag the statement entries?
Will I need to modify the invoices back to unpaid & then tag them?

#5

You should have tagged each transaction to the relevant invoice, purchase. I find this the easiest method. Adding payments to invoices separately will create double entries in your bank transactions.

closed #6

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