I am using QuickFile for my first VAT return having just used Excel spreadsheets for VAT returns in the past. This new VAT return is for 01st Feb - 31st April
A client had paid me £2000 + £400 vat (£2400) back in March for work which never happened and he asked for the money to be returned. This was refunded in full to him in May.
I have used the inbuilt tools to refund the invoice and send a credit note, however, I noticed that my Quickfile VAT return which I am now completing still expects me to pay the £400 vat. Am I entitled not to pay this VAT for this return and if so what would be the best way to do this as cash flow is a bit of a problem at the moment?
What VAT scheme are you on, If it is cash based then the VAT return will look at the payment dates for the returns.
What this means is that transaction related to “client had paid me £2000 + £400 vat (£2400) back in March” would fall in the 01st Feb - 31st April return.
The transaction related to “he asked for the money to be returned. This was refunded in full to him in May.” would fall under the next return.
Thanks for your reply - I am cash-based, and I thought that would probably be the case. I thought there might be a way to make a manual adjustment for this return as I could really do with that £400 this month.