Roll back VAT to assign expenses to correct categories

Hi guys,

I am currently working on my first ever Corporation Tax return. In my naiviety I assigned all purchases/expenses to pretty random categories, thinking I could fix/assimilate it all later. However, I now cannot change the category on anything which went on my VAT returns. I am not wanting to alter figures, only the category. I now realise this means some of my VAT could have been wrong!!

I have seen on the help page that I can ‘roll back’ VAT, and warns this will delete journal entries. However, I don’t really understand what the real implications of this will be.

I basically want to know if I can rollback VAT returns, go in and fix the categories, then put the VAT returns back as they should be (ie. locked off for each period).

Does anyone see any issues here?

If you have already submitted your VAT return figures you don’t Ideally want to roll back these returns. Instead you can fix these category issues by reallocating the balances using a journal.

Here’s an example of a journal that will move £1000 from general purchases to advertising.

You can add as many lines to the journal as you need, the key thing you will need to know is the amounts involved. Posting to the wrong category in itself doesn’t affect the VAT calc, only the VAT percentages you enter on the purchase and sales invoices will affect the VAT.

If you do need to adjust your VAT you can do so on your next return using the adjustment box.