VAT Adjustment in Quickbooks

[Nord20]

Hi All,

I'm hoping for some guidance on how to account for an adjustment in the VAT rebate (my first filing) I received from HMRC.

Basically, I got it slightly wrong and so was paid back less than I filed for. I have tried making a VAT adjustment in QB, but it either increases the amount I should expect back (and, therefore, the HMRC - Receivables Invoice) or it leaves the amount the same and adds the extra amount to my current VAT liability.

I think the problem may stem from my VAT filing date being in the middle of a quarter (31st Jan), which QB doesn't seem to like very much. The helpfile is about as helpful as an ashtray on a motorbike, so I'm hoping someone here can explain in relatively simple terms the best way to account for this.

All help is hugely appreciated, as it will probably save my computer from being hurled out the window.

Many thanks.

 

[Scalloway]

I do not understand why you got back less than you filed for. Did you enter wrong figures on the return?

 

[Ray Coman]

It does depend on which QB you are using and there are more than one way of achieving this. First try re-opening the closed off period. To do this go to 'make journal entry' or similar, then keep clicking previous until you see a journal with VAT on it. Then delete this entry. That should delete the information you sent electronically to HMRC.

Next put through another journal for the VAT adjustment that you agreed to make with HMRC. To do this debit VAT liability (or in this case VAT debtor), then credit whatever expense or fixed asset needs to be adjusted back.

Re-run the VAT report, and this time select file by paper. This should close off the period with the correct debtor showing for VAT.

 

[Nord20]

Hi Ray,

thanks very much for that - works a treat!

Incidentally, I'm using QB 2010 (only just started the business and this was my first VAT return).

In answer to your question, Scalloway, as implausible as it may seem, yes, I submitted the wrong amount in my return. Because it was my first one I was claiming for all our expenses to date and accidentally included an invoice from our solicitor that was dated more than six months ago (you can claim for products purchased up to 3 years ago, but services for only six months).