How to record small VAT errors

Question asked by Richard Cooper 10 years ago

How should I record a small VAT return error in Clearbooks?

I have a VAT return which I generated and paid before I started using Clearbooks. When I started using Clearbooks I discovered that the VAT return report for that quarter showed that I had under-reported and under-paid by about £5. I corrected that error by adjusting the next VAT return that I submitted.

How should I record that error and its correction in Clearbooks?

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2 Replies

Hi Richard

You don't need to, Clear Books is already correct.

As an example:

  • Oct-Dec VAT return as calculated by Clear Books is £1000.

  • However, you only quote £995 when filing your return outside of the system.

  • You mark the payment of £995 in Clear Books, leaving a balance of £5 still owing.

  • The Jan-Mar VAT return as calculated by Clear Books is again £1000.

  • You again file the return outside of the system, this time quoting an amount of £1005 (the £1000 for this Q and £5 for the last).

  • You then mark the payment of £1005 in Clear Books, £5 against the Oct-Dec return and £1000 for Jan-Mar.

Make sense?

Best answer
10 years ago

HI Kevin,

Yep, that makes sense. That's actually how I was going to do it, but then I wondered if it would be better to edit the invoices in ClearBooks to match the submitted returns

Thanks.

10 years ago

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