My balance sheet has on the asset side 2201 Purchase Tax Control Account and 2202 VAT liability; on the liabilities side 2200 Sales Tax Control Account. My previous software had a single item combining all 3 of the above “Sales Tax due to HMRC”. Why is Quickfile displaying 3 items when it could be combined in a single figure to show the amount due to HMRC for VAT?
Note that for the first few quarters I was using another accounting package in parallel to Quickfile and was not using Quickfile to generate VAT returns . Could this be causing problems?
Well the codes have different meaning…
It’s designed this way so you can isolate the total of purchase and sales VAT separately. This provides more detail for those that need it, rather than just showing a NET figure.
Also the VAT Liability account is something different again, this code shows how much VAT you owe (or are owed) based on submitted returns. QuickFile will post to this code at the point a VAT returns is filed, it will move the balances from purchase and sales tax to the liability code.
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