I have just noticed that my VAT payments do appear in my VAT liability account.
When I have made a VAT payment I have been recording a Money Paid Out transaction from the Cheque Account to HMRC with a VAT Treatment of 'Out of Scope' however for some reason it has been allocated to the Owner's Drawings and Personal Use account.
Could you please give me some guidance on what i need to do to rectify the errors and will it have an adverse effect on any previous financial years for which I have already submitted self assessment returns?
Apologies, the first line of my previous post should read:
I have just noticed that my VAT payments do not appear in my VAT liability account.
Hi Stuart,
Edit the payment transaction and set the Allocate To Account to 'VAT Liability'. If it was previously allocated to 'Owners Drawings and Personal Use' then making this change will not affect your profit or your self-assessment returns.
Regards,