First VAT return - Owed a repayment (Box 5) but accountant told me to pay Box 1 amount. Is this correct?

[Proletariat22]

I am owed a repayment but my accountant told me to pay the Box 1 amount instead of putting 0 and that the Box 1 £ would be refunded as well as the Box 5 figure (Net VAT to be paid). Is this correct?

When checking my repayment I can only see the Box 5 figure and not a refund of the Box 1 amount

 

[DWS]

Your box 5 total is either what you have to pay HMRC in Net VAT or the repayment that you are due.
If you are due a repayment then there is no need to pay anything.
Why would you put 0 in box 1 I do not understand, the idea is that the VAT due goes in there and the VAT reclaim goes in box 4 leaving the Net in Box 5

 

[Proletariat22]

Your box 5 total is either what you have to pay HMRC in Net VAT or the repayment that you are due.
If you are due a repayment then there is no need to pay anything.
Why would you put 0 in box 1 I do not understand, the idea is that the VAT due goes in there and the VAT reclaim goes in box 4 leaving the Net in Box 5

As in putting £0 when paying the VAT Bill not Box 1

 

[DWS]

As in putting £0 when paying the VAT Bill not Box 1

But there will be nothing to pay so who will you be paying £0 to?

 

[MyAccountantOnline]

I am owed a repayment but my accountant told me to pay the Box 1 amount instead of putting 0 and that the Box 1 £ would be refunded as well as the Box 5 figure (Net VAT to be paid). Is this correct?

When checking my repayment I can only see the Box 5 figure and not a refund of the Box 1 amount

Box 5 is the net VAT to pay to or reclaim from HMRC so that would be the only amount you would either pay or receive.

It sounds very odd.

Did you query this with your accountant/ask your accountant to confirm this?

 

[MyAccountantOnline]

As in putting £0 when paying the VAT Bill not Box 1

I wonder if their is a slight misunderstanding here?

Assuming you dont use the Flate rate scheme you'd put in box 1 the VAT on your sales which may be the confusion of 'VAT to pay'. It is VAT you 'pay' to HMRC but the actual payment or repayment each quarter is the VAT payable on sales less VAT recoverable on expenses.

 

[numbersrule]

I am owed a repayment but my accountant told me to pay the Box 1 amount instead of putting 0 and that the Box 1 £ would be refunded as well as the Box 5 figure (Net VAT to be paid). Is this correct?

When checking my repayment I can only see the Box 5 figure and not a refund of the Box 1 amount

Hi Proletariat22
I agree with MyAccountantOnline and DWS.
It is possible that you have misunderstood what your Accountant told you.
In any event, which Online Accounting Software are you using? Most Online Systems now enable you to follow these steps:

a) Enter all your financial transactions correctly with the correct VAT treatment.
b) Reconcile the Bank up to the end of the VAT period.
c) Check the content of the VAT boxes
d) Click Submit VAT Return to HMRC
e) Click that you accept responsibility for VAT Return
f) HMRC take payment by Direct Debit

This way you don't really have to make interpretations of what you have to 'pay' as such because the Making Tax Digital process simplifies the VAT Return and payment taking process.

If you are not already using Online Accounting Software then my advice would be that in all cases it is a no brainer to start using Online Accounting Software.

 

[GLAbusiness]

Another learning point here:

If you don't fully understand what your accountant tells you then keep asking him/her to explain it in more detail