I’m not sure if this is supposed to happen, to me it should not:
When I create a new VAT return for the quarter 01/04/2017 to 30/06/2017 , in box 7, there is a value of £1710. I believe this is coming from a purchase made 09/11/2016.
Firstly, the purchase in question doesn’t have a VAT rate as I was under the flat rate scheme on that date and secondly, surely the return’s date range should filter it out?
I have just turned off the flat rate VAT scheme, so I wonder if that has something to do with it.
If anyone has any ideas on how I can fix this, I’d be most grateful if you could share.
When was the purchase invoice entered into the system? If it was after your previous VAT return, then it’s working correctly.
When you run a return it will pick up anything not already submitted and include it (upto the end of that VAT period). So if the invoice was entered recently, it will be picked up. It’s done this way to ensure nothing is missed.
However, this does create a problem in your case as you’ve switched schemes. The VAT Settings are stored at an account level, so running a return today treats everything at today’s settings (e.g. standard accrual accounting). You may be OK manually adjusting it on this occasion as it’s just one invoice, however you may wish to double check with an accountant or HMRC themselves to ensure it’s correct.
I had to role back my flate-rate VAT returns to get this item in the right place. I then re-submitted the returns, before turning off flat-rate. This was done on 1st April,
The item’s VAT rate is 0%, so I still believe it shouldn’t be picked up.
Is there any chance there is something you can do on the backend to remove this item from future VAT returns?
Box 7 on the VAT return is “Total value of purchases exc VAT”, regardless of VAT rate, so it should be picked up.
The VAT return will automatically pick up any invoices or payments (depending on if you’re on cash or accrual accounting) that haven’t already been submitted, upto the end date of your return.
For example, if you run a return for November '16 - January '17, and then input an invoice into the system for December '16, this will be added to your next return for February '17 - April '17.
It’s unlikely that we’re going to change this as this prevents submitting incorrect figures to HMRC.
The only way to prevent it being submitted in a future return is to include it as part of a previous one.
This came about because I deleted the orginal entry, made before the return and then created one after. (Still before switching off flat-rate). I’ve managed to resolve it by undeleting the previous purchase and deleting the newer one.
I was more asking if there was something you could do on the database for just this record. I understand why the system is the way it is, and I wasn’t suggesting a global change.
Unfortunately not. But we allow you make manually adjustments to each VAT return should they be incorrect or if incase the system assumes something which is incorrect (e.g. what box something appears in).
