VAT accrual accounting vs VAT cash accounting

VAT return calculations

I have introduced my data for the past year in Quick file during the last 3 months. I created the invoices with the correct dates and linked payments.
The vat calculation considers the date when the payment was allocated instead of the date of the invoice.
Invoice date 11-04
payment date 18-09

I create today the previous vat returns to avoid this to be all considered in the most recent return, but it didn-t work because of the identified problem. I will erase my vat returns created today / which were all incorrect.

Can you correct this problem and calculate the vat taking in account only the invoice dates?
Kind Regards,

Hi @portuguesestory. I’m not actually VAT Registered myself, but I had a thought when reading your post.

There’s 2 ways to account for VAT - Cash accounting, and Accrual Accounting. It sounds like you’re running on cash accounting (account for the money when it’s received), rather than accrual (account for money when an invoice is raised).

This article may be able to help: - it also explains the 2 ‘modes’ better than what I can, and also explain how to change over.

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@Parker1090 is right. HMRC will be able to tell you what scheme you should be using. Most small businesses are on the cash accounting scheme, which calculates liabilities based on the payment dates. You can set the appropriate scheme in your VAT settings.

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