VAT
Question asked by Geoff Thomas 9 years ago
just setting up clear books I have a amount payable to Vat from last quarter this month where do I put the opening balance
Hi Geoff,
You may want to check this over with an accountant, especially with how to balance the opening VAT liability - I have used Retained earnings in this example. So to add the opening VAT liability head to Dashboard>Getting started>Other balances if you are in the new theme and Stteings>Getting started if you are in the old. Add the liability as a credit by entering a negative amount - I have balanced this out with Retained Earnings in my example:
https://s3-eu-west-1.amazonaws.com/uploads-eu.hipchat.com/36185/273538/RjgVtpiy9m8jDEf/upload.png
You can then explain the payment using the VAT control account - if it does not appear in the list when explaining the payment, head to Settings>Accounting>Codes to show the VAT control in purchases:
Best answerthanks john most helpfull
hi john do I put it in Opening balances VAT Payable Or Vat Control
Well, I suppose it can be either (preferably VAT control) - but just know that if you put the opening VAT liability to VAT payable, the payment for this must also be coded to VAT payable to cancel it down. If the opening balance is put to VAT control the payment for this must be VAT control.
Just be aware that all future payments to HMRC must always be coded to VAT control.
thanks for your help john
No problem :)
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