I am about to submit my first ever VAT return using QuickFile. Before MakingTaxDigital I used spreadsheets and manually entered my figures.
For this first time, and to help me understand how QuickFile works, I have still compiled spreadsheets to double-check against.
When I view the ‘Chart of Nominal Accounts’ for this period, the total for ‘4000 General Sales’ matches my spreadsheet (equiv. Box 6.); the total for ‘2200 Sales Tax Control Account’ matches my spreadsheet (equiv. Box 3.); the total for ‘2201 Purchase Tax Control Account’ matches my spreadsheet (equiv. Box 4.).
But when I create the VAT return in QuickFile for the period, none of the figures match the above; and ultimately the “NET VAT to be paid to Customs” (equiv. Box 5.) is different to my calculation of Box 3. - Box 4.?
Are you Cash or Accrual accounting? It may be that the dates have fallen outside the VAT period? You can download the calculations to see what has been included to help you narrow down the invoices etc that haven’t been
Cash accounting.
I downloaded the calculations as you suggested.
Re: Box 6. All the Invoices for this period are dated for within this period, but I can see that 10 out of 32 Invoices aren’t included in the download - 3 are unpaid, 3 were paid before this period, 3 were paid after this period, and 1 was paid, half before and half after this period. The total of the 3 unpaid ones is closest to the difference, but still out by just under a fiver.
If you are cash accounting then the VAT return looks at the date of the payments rather than the date of the invoice. If the payment dates are outside the date range of the VAT return this will by why they are not appearing
Hi Beth
I’l jump on this topic rather than creating new one!
I’m having similar issue. Cash Accounting - First VAT return is Sep-Oct.
I have about 70 separate payments received in the sep/oct period but these were for invoices prior to my VAT start date (1st Sep). So QF has included these in the total sales on the vat return. Do I now have to go into QF and manually amend each payment to show a receipt date before my first VAT period?
Wont this also cause issues with bank reconciling?
‘Cash’, or ‘Accrual’… I tested calculating my return using both of these options, and Accrual matched the spreadsheets that I would previously have based my returns on. I have now asked my accountant to decide which to use as I don’t want to mess it up going forward! Beth highlighted to me the difference between the two options.
Since those invoices don’t include any VAT this won’t affect your overall VAT liability (box 1 & 5), only the total sales in box 6. You should just be able to manually adjust box 6 down by the value of these 70 payments, just keep a record of what you’ve done (“excluded payments received on invoices that were issued before VAT registration”).
I tried adjusting and there is a note - Adjustment narrative and amounts are not sent to HMRC electronically
will the adjusted figure go through to HMRC?
The adjusted amount will go to HMRC but they won’t see the adjustment or any notes associated with that. All that HMRC receive with the VAT return is the totals from each box.