Hello

I have a couple more queries as I tidy my accounts and iron out the anomalies.

1.  I have picked up on a money paid out transaction to a supplier dated a few months ago with a VAT element.  It is prior to the current VAT period.  This was incorrectly input to Solar as there was no VAT charged on the item.  
   

2.  Another money paid out transaction identified prior to the current VAT period was a duplicate and had simply been entered twice.  This also has a VAT element.
   

Can you please clarify how to correct these and maintain accurate VAT records?

Many thanks

Ellie Robinson

Hi Ellie,

In both cases the trick is to record a 'refund' from your supplier for the incorrect transaction.

1. Record a Money Received transaction with the Type set to 'General Payment' and a VAT rate of 17.5% and the VAT Treatment set to 'Purchase of Goods or Services from UK Supplier', then record another Money Paid Out transaction with a VAT rate of 0%.

2. Record a Money Received transaction with the Type set to 'General Payment' and a VAT rate of 17.5% and the VAT Treatment set to 'Purchase of Goods or Services from UK Supplier'.

If your financial year end has occurred since the incorrect transactions were entered you will need to adjust the profit to account for the errors.

Also, please check this information with your accountant as he/she may prefer a different approach.

Hi,

Also remember that you may need to declare the inaccuracy to the VAT office.
There is a VAT reporting form on the HRMC website.
The rules were changed about errors under £1000 as far as I am aware.

Regards
Joe.