Flat Rate Scheme - Liability from previous financial year

I'm setting up a new installation of Solar Accounts. I owe VAT from my previous year's trading which I settled a month into this financial year. I'd like this amount to end up in an account where this year's VAT payments are recorded. How do I input the liability at the start of the year?

I note that there is an account for VAT Liability but this already has a balance from my recording of outstanding invoices at the start of this year - I assume this is a different account from where I'd post the above payment?

Thanks

Posted by Jim Varney on May 18, 2011 11:09 AM BST

Hi Jim,

We recommend you use the same account: VAT Liability. Just increase the opening balance of this account by the amount you owed from your previous VAT return. When you record the payment, create a Money Paid Out transaction from the Cheque Account to the VAT Liability account, with the VAT Treatment set to 'Out of Scope'.

Regards,

Posted by Mark McLaren (Solar Accounts) on May 18, 2011 1:02 PM BST