VAT Return rolled back - two VAT Returns now showing

[alan_mcbrien]

Hi @QFSteve,

Both of the returns screenshotted have the same value due/owed. The rollback was done in an attempt to correct the pre-VAT sales invoice payments being included as part of the first MTD VAT Return. Rather than making an adjustment for the the pre-VAT sales invoice payments I wanted to remove those payments from the VAT Return as they created an unusual “Balance Sheet” entry…

VAT manual adjustment

First VAT Return filed via MTD to HMRC which includes manual adjustments. VAT Return filed on the basis of cash accounting and a flat rate of 10.5%. Two adjustments made; Discount given by HMRC for first year registration for the Flat Rate Scheme Payments received for invoices that were invoiced prior to VAT registration The two manual adjustments were showing on the Balance Sheet as Current Liabilities (2204) Manual Adjustments.but both journaled to (4999) Flat Rate VAT Sales Adjustment whi…

Cash based/Flat Rate Scheme creates a VAT Sales liability for invoices that did not have VAT charged that then creates an unusual journal entry under “(2204) Manual Adjustments” that shows on the balance sheet “Current Liabilities” that is better accounted for in a more appropriate way.

As you suggested in your earlier reply to this “This type of query should always be checked with your accountant for professional advice.” but I suggest that the simpler method would to include a “tick box” to exclude payments that are pre-VAT registration.