Vat report and disbursement

[doug]

We invoice for professional services with VAT for UK clients and without for overseas clients.
The invoice includes disbursements for all without adding VAT ( these are usually double our fees, so significant)

We allocate to the same account for the disbursement costs and contra off payments received so ( while there will be some credit and debit at any given time ) effectively there will be zero affect on the P&L.

The problem is we report VAT on a cash accounting basis - and the disbursement ‘sales’ and ‘expenses’ show up in the VAT report so massively inflate these numbers. is there a way of stripping these number out of the VAT report.

[QFMathew]

Hello @doug

The VAT return in QuickFile does support the option to manually adjust the values by clicking on the little arrow in the box. You can also add some notes to say why this was done (although this won’t be visible to HMRC - they just see the end figures). So if you need to decrease or increase any of the figures, you can.

I would double check with your accountant before making these adjustments just to be sure it’s correct however.