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VAT manual adjustments

We have run Solar accounts for a couple of financial years and following our audit of accounts have identified a number of errors to be adjusted in our next VAT return. This results in both input and output adjustments.

We need to adjust Box 1 and 4 at our next return, our accountant has provided the figures, could you advise on whether this can be achieved within Solar accounts or do we manually adjust our next return.

If the adjustments are made manually, when we run our VAT return and record the payment that results from Solar accounts do we then need to add a payment or credit to account for the adjusted payment


Posted by David Barker on Oct 18, 2010 7:11 AM BST

Hi David,

Unfortunately Solar Accounts cannot include adjustments on the VAT return figures it calculates. You will need to click menu Tools > Preparate a VAT Return (as normal) but then adjust the figures when you copy them from Solar Accounts to your return form. You will also need to adjust the amount in the VAT return payment window shown in Solar Accounts.

Also, you may need to record an adjustment to the VAT Liability account (check this with your accountant). To record this adjustment you would create a General Transaction between the VAT Liability account and appropriate income or expense account.

Regards,


Posted by Mark McLaren (Solar Accounts) on Oct 18, 2010 8:40 AM BST

Aha, that answered my question also.

I'll post our dilemma anyway, in case helpful for other readers...

We joined the Flat Rate VAT scheme, and filed our first return using an appropriate rate, reduced by 1% for the first year. Unfortunately, when we went to uplift the rate for the new accounting period by 1%, to our horror we discovered the original rates table we had used to choose the rate....was expired (I entirely blame HMRC for mailing us old tables!)

The flat rate we had used in the prior return were therefore incorrect (too low), and we didn't pay enough VAT to the HMRC in our first return. We've adjusted this in Solar Accounts via a General Transaction, but have also noticed that the "Prepare a VAT Return" doesn't take this into account.

Our general transaction is:
From Account : VAT Liability
To Account : Gain (or Loss) due to Flat Rate VAT

From what you are saying above, we'll need to manually correct the VAT return details to take this adjustment into account. Doesn't sound too painful.

Cheers


Posted by Angel K on Jan 23, 2013 3:45 PM GMT