VAT Query - not included in P&L

Hey :slight_smile:
Wondered if anyone could help me out.

We have just last month had to go VAT registered so all very new too me. my question is when I look at my profit and loss sheet or chart of accounts. why does quickfile remove the VAT In the amount shown. for example on my sales list last month made a income of £10,70 but the profit and loss sheet is showing income £9250 the only reason I can see for this is that quickfile isn’t including the VAT in the totals. is there any way to change this?

Many thanks

Hi @SDL

To put it simply, it’s not included because it’s not your money.

When you collect VAT, you’re doing it on behalf of HMRC, and as such it’s a liability or asset, depends on whether you paid it out or have collected it.

It actually shows up on your balance sheet under codes 2201 Purchase Tax Control Account for VAT you’ve paid out (sometimes referred to as “input VAT”), and 2200 Sales Tax Control Account for VAT you’ve collected from sales invoices (sometimes called “output VAT”).

As a VAT registered business, all figures are reported as net figures, which is everything excluding VAT.

I hope that makes sense, and helps! :slight_smile:

That amazing thank you, I was just trying to find out a way to make sure all number match up to pass on the accountant that’s works great as can add figures together thank you so much!! :):grin:

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