Hi,
As someone with no prior accounting knowledge, how do I account for under and over paid VAT in QF? I know it will be an asset or liability.
Hello @samppatel
When you submit a VAT return within QuickFile (either with it actually being sent to HMRC, or not), we’ll create the relevant journals for you. This will then show as a liability.
When you then pay HMRC, tag the payment as a payment to HMRC, and select VAT Liability, and we’ll adjust the balance for you so it’s reflected on your balance sheet.
However, we always recommend double checking the figures from the return before submitting them just to be sure they are correct.
I hope that helps!
I have uploaded and entered historic data in QF for which the VAT was calculated outside of QF incorrectly. Should I still use QF to do the VAT for the old returns so the liability will be correct but the payments out of the current account will not match.
Essentially, the VAT return is a journal with 2202 VAT Liability being the code that holds the balance owed to HMRC.
When the payment is tagged from the bank statement, it’s tagged to the same nominal and where the payment matches the balance, it cancels out so the balance is £0.00 (and therefore not on the balance sheet).
So, you can either run the old returns in QuickFile (providing you haven’t run any since as you can’t work backwards with them), or you can journal the balances to 2202, and tag the payments as above (Payment to HMRC >> VAT Liability). This would leave any outstanding amounts on the balance sheet.