Hi,
Had made before prepayment on client Touax. On 4,7,17 have charged invoice n. 188 of £2000, paid £1,956.89 on accountm, difference to £2000 assigned to bank charges. On draft VAT return 1.5-31.7.17 prepayment on £12.5 in clients account made in 2016, doesnt allow correct amount of £2000 to be presenteed. It shoiws sale of £1987.25.
What to do?
Dan
Hi @dan.l
Am I correct by saying you’ve had a payment from a client against an invoice valued at £2,000, but you’ve only received £1,987.25 as the rest has been taken as bank fees. Is that correct?
Are you on cash or accrual based accounting for VAT?
Cash VAT accounting we use.
Had made before prepayment on client Touax in 2016 £12.5.
On 4,7,17 have charged invoice now to 189 now of £2000, paid £1,956.89 on account same day, its tagged.
When I want to log payment to invoice of £2000 asks me Apply from credit [GBP 1969.64]. not £1,956.89. I assume because there is reviousprepayment of £12.5 so it summs. And £30.36 will assign to bank charges,
On draft VAT return 1.5-31.7.17 doesn’t allow correct amount of £2000 to be presented. It shows sale of £1987.25.
What to do?
Firstly, I should point out that I’m not an accountant, so it’s always worth checking with yours to ensure everything is accounted correctly.
But from your post, it sounds like the prepayment of £12.50 in 2016 has already been accounted for in another return. It would also be worth checking if you have a VAT start date (e.g. when you become VAT registered). If this was, for example, January 2017, then the payment in 2016 would fall outside this range and wouldn’t be included on that basis, even if it was added to the system recently.
But, £1,987.25 is £12.75 less than the £2,000. I’m not sure where the £0.25 has gone without getting further information from you and digging a bit deeper.
Yes prepayment of £12.50 done in 2016, was accounted in annual accounts . How to remove it now?
VAT start date is after 1.8.16. Prepayment £12.50 doesnt have VAT element as it id dome from EU customer that doesn’t pay VAT.
What would be the best way to show invoice of £2000 not £1987.25?
Also in this vat oeriod 1.5.17-31.7.17 have other 3 VAT prepayments from EU clients that dont pay VAT to us, in total amount of £276.68. Shoul I add them in= Total value of purchases exc VAT.?
Thanks,
Dan
If you’re looking to remove that £12.50 from the invoice, you would need to detach the payment. It does sound like this was prior to your VAT registration so it shouldn’t be locked.
Firstly, view the invoice and then click the “Payments” link at the top (this is directly beneath the modify button etc.)
This will show you a list of associated payments. View the payment with the £12.50, and providing it’s not locked in anyway, you will see a red detach button.
The system will automatically generate the return based on the data entered. As I mentioned above, I’m not an accountant so I can’t confirm whether showing the full £2,000 would be correct or not. If as it stands you need to show the £2,000 however, you can make a manual adjustment. Please see our guide for further information on this.
I would refer to either your accountant or the HMRC guidance notes to ensure this is completed correctly. I’ve included a link below to HMRC’s guide to completing a VAT return, which will hopefully help: