VAT Liability showing as Asset in Balance Sheet

Hi,
I have Flat rate VAT. I am trying to consolidate my accounts and it seems that VAT is showing in VAT Liability 2202 as Debit.

Further more on Balance Sheet - it shows VAT Liability as Asset. Can you please advice how to rectify this?

Thanks,
Manish

Is it all backwards or does that just mean that HMRC owe you a refund (you’ve paid out more in purchase VAT than you’ve collected on your own sales)?

Forget that, I missed the “flat rate” bit…

It looks like you haven’t run any VAT returns in QuickFile but you’ve still been tagging your payments to HMRC on the bank side, this would push your VAT liability 2202 into the asset section of the balance sheet.

Processing your VAT returns in QuickFile completes the other half of the story by crediting the VAT liability account. I.e. when a VAT return is submitted on QuickFile it will create the liability which then gets balanced off when the VAT is paid.

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