Problems with invoices and VAT return

[GrumpyPaul]

Hi All

I am a novice with Quickfile and up to today I have found it relatively easy to do.

In Jan this year I had to create an invoice for the Self-Employment Income Support Scheme for the three payments received during Covid. I did this so that the self employed tax return would be correct. The invoice was created dated 02/07/2020 and did not include any VAT as none was chargeable- it was just there to show the income.

I have run a VAT report for the quarter 1/11/21 - 31/1/22 (late I know ) and that invoice appears in the VAT return dated 5/4/2021 which is when I recorded the invoice as being paid however even though the invoice has no VAT on it, it is still appearing in the VAT return.

Can anyone guide me as to what stupid mistake I have made - many thanks as always

Paul

[Bagpipe]

Hi @GrumpyPaul ,

You should not have raised sales invoices for the SEISS monies as it not turnover fot vat purposes. It is in effect, loss of profits and is not to be shown on any VAT return. Those invoices will need deleting.
When the money is received into the bank it should be tagged as ‘something else’ and coded to ,say, misc income (4900?) or better still, before tagging, create a new nominal code (reports…chart of accounts) and make one called SEISS grants.
Hope this helps