Vat return not showing any values

Hi

I setup a new account started entering purchases from Aug onwards. Account is setup for vat but when I did my first vat return, all the values were £0 apart from purchases exc vat which was totalling to £189. I’ve had one sale so far (this month) and I have vat return due end of this month. When I preview the return it shows £0 for all boxes apart from purchases exc vat which is now showing -£189. Accounting report shows its recording correctly. Why is this?

You have one paid invoice on your account and the payment date is lodged as 20th November 2013. You have a filed VAT return for 01/06/2013 - 31/08/2013. I wouldn’t expect to see any sales reported in this return.

I’m not a vat expert as youve probably guessed, but I thought I’d see at least the vat amounts from the previous quarter purchases, does the accounting look Ok to you?

I noticed a couple of problems.

  1. The payments allocated to those purchase were originally entered as prepayments and then later bound to the invoices. When the prepayments were lodged they were entered with zero VAT. So no purchase VAT was picked up on the first return.

  2. The start date on your VAT settings is configured for ‘02/12/2013’, which is actually in the future. This will cause your second return (up to the end of November to be incorrect). You should change this to 2012 I believe.

If you’ve already filed that first return with HMRC you may need to make an adjustment on your second return to recover any VAT missed on those prepayments.

Is there a way to correct 1) ?
and I tried changing the vat start date but it wont let me change it.

We’ve changed the date to 02/12/2012. The VAT on those 7 purchases will get picked up on the next VAT return as those prepayments are now allocated to invoices bearing VAT. You can preview the next return, download the calculations and see those itemised invoices.

Fantastic! Thanks Glenn.

Ok just so I understand the process for next time, when I get a sale, I create a new invoice, enter the details and cost exc vat, it then automatically calculates the vat amount and mark the invoice as paid. Is this correct? I followed the same process for purchases but I’m obviously missing a step somewhere.

Yes, when you mark as paid just remember to ensure that the payment date matches that on your bank. You’re on cash accounting for VAT so the VAT return report will calculate your VAT payable and receivable based on the date and amounts of the payments received.

VAT Returns Guide

With your purchases I can see you linked the payments to the supplier (not to the invoices), ran the VAT Return and then linked it to the invoices later. Your next VAT return should make all the appropriate adjustments.

Ok got it. Thanks v much for the help and excellent software, so much easier to use.

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