I have made 3 interim payments on the flat rate scheme which are not being taken into account in the VAT calculations in the draft return. How do I get them to show up and be deducted from the amount owing?
How have you tagged the interim payments?
I don’t know what this means. The only transactions showing up in my bank record on Quickfile are the payments of my invoices. I made 3 interim payments from my bank account so what do I need to do to tag them? thanks
Just tag them as tax payments to HMRC and select VAT - they’ll sit on your balance sheet looking like an asset but then when you complete the actual VAT return and register the final liability it’ll offset against the payments you’ve already made and leave the VAT liability nominal with the balancing amount you actually owe.
When you say the only transactions showing are 3 invoices, do you not import your bank statements at all?
How do you manage to reconcile your vat without bank statement entries?
My bank account is linked so when an invoice is paid the amount is tagged. I’ve just set this up, though, to do a return due 7th June, so I’m still a lot clueless about this. I’ve now got the three interim payments tagged and they are showing up on the balance sheet current assets as VAT liability, which I guess sounds right.
Yes, you’ve essentially got +£300 (or whatever) in VAT liability now, when you run the VAT return and it says you owe £400 for the quarter then that’ll cancel out and your balance sheet will then say -£100, when you make the balancing £100 payment it’ll go back to zero.
I’ve just run the VAT return again and it’s coming up as the same amount owing to HMRC as before - 22k when I’ve made 7500 interim payments. Do I adjust the amount on the VAT return through the manual adjustments?
The VAT return itself will show the total liability before deducting the interim payments, but after the return is saved the balance on the “VAT liability” nominal on your balance sheet will be what you owe (or are owed) after the interim payments have been deducted.
I submitted the VAT return, and on the balance sheet it is now showing up as the VAT amount payable less the 7500 interim payments. So I think this is right. So I just pay the amount shown as VAT Liability to HMRC right?
Thanks so much.
1 Like
Pay the amount shown as a liability on the balance sheet yes.
This topic was automatically closed after 7 days. New replies are no longer allowed.