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VAT REPORT - need to amend

Never had this problem before but I created my VAT report and then went to Export option to see actual values.

I realised that I had made a major mistake with a large invoice which I had incorrectly dated. Then amended it and expected the new VAT report to pick this up. However, whatever I do it’s stuck on my original and incorrect values.

I am on cash accounting with bank feed. What can I do to delete the current VAT report and save\send a new VAT report?

Hi @scipio,

If you are cash accounting then the invoice date won’t play a part in the VAT return. You need to look at the date of the payment.

If the payment date is outside of the return date then it won’t be picked up - you may find that it will be included in the next one instead

I am afraid this is pretty disastrous due to the way we have to pay for the imports to the supplier.
We pay the supplier as soon as the vessel sails against the Bill of Lading but whole VAT element when the shipment arrives in the UK port. In this case the Vat has fallen into a difference quarter. The net result is that our VAT Return now looks like we have not paid VAT on a large sum and on past form, we can be sure that we will be getting a visitation from HMCE. Is there any way we can send an explanation to HMCE alongside simply providing the raw data?

This is increasing becoming a problem. I can understand that there is nothing we can do to change cash but you seem to be saying that we can’t add or subtract or change the designation of an invoice once we click on the “prepare VAT button”. This is not trivial and HMCE checks to verify that Cash VAT is a reasonable percentage of the Invoiced Sales and Purchase figures.

Should we consider moving to Invoice Accounting. Would this give us more flexibility to make amendments?

Sorry just to repeat my dilemma - I had a couple of supplier invoices that I received late and after I had pressed the “Prepare VAT” button. These are correctly dated to the correct Quarter in my Quickfile Accounts but are not shown in the Purchase Total on the VAT Return.

Is there no way I can wipe the slate clean, start again and send a more accurate VAT Return?

Hi @scipio,

You can make adjustments to your VAT return if needed but I would strongly advise you speak to an Accountant.

Cash accounting looks at the payment date and will bring the figures into your VAT return when you pay the invoices. If you are on accrual accounting then the VAT is calculated on the invoice date regardless of whether you have paid or have received payment for those invoices.

If you are unsure which method is best for you then I would seek advice from an accountant.

If you have accounted for everything correctly and have the data to back it up then if HMRC do decide they want to check your return then you shouldn’t need to worry as you have all the evidence you need

It sounds to me like you shouldn’t be using cash accounting. Who advised you do this? If you need to pay vat upon receipt of invoice, then you shouldn’t be using cash accounting.

It is that we can not justify our Accounts - we can. The problem is a HMRC visit wastes two or three days.

The business has changed in the 20 years since we started - I suppose we should have looked at it again when we moved from Sage to Quickfile. Our imports were exclusively from the EU and with one or two months credit, which meant better cashflow by using Cash Accounting. Now we import at better prices (and quality) from China and India but the downside is that payment is against Bill of Lading.

Do you have any articles on moving from Cash to Invoice Accounting using Quickfile?

Hi @scipio,

I found this thread where the same question was asked. There are a few links to articles which may help on there: Change to Accrual