We have recently registered for VAT, my understanding is that we can reclaim the VAT on good purchased for resale ( that are were held in stock at the date of registration) back to April 06 as well as any Capx items purchased.
How do I record these figs as I am due to send our first VAT return by the end of the month.
Hi Tom,
Solar Accounts will not automatically keep track of VAT paid before you were registered for VAT. You will need to manually work out how much VAT you can reclaim, then record a General Transaction from Uncategorised Income to the VAT Liability account for that amount. You will also need to adjust the figures on the first VAT return calculated by Solar Accounts to include this reduction in the VAT due.
Regards,
Have now worked out what is due, and the Vat man actually owes money, so do I enter it as a Minus ( - ) fig
Hi Tom,
Yes, you will need to enter a minus figure in Box 5 of your VAT return. You can can enter a minus figure in the Amount field in the Money Paid Out window, or create a Money Received transaction with a positive amount.
Cheers,
Thanks Mark
Tought it was that but wanted to check.
Is your software going to assume this is Vatable 'income' and therefore is there going to be VAT on this 'income'...
I am on a flat rate scheme.
Hello Arran,
When you record the VAT refund payment from HMRC, ensure the VAT Treatment field is set to 'Out of Scope'. This will prevent the payment from affecting your next VAT return.
Regards,