Allocate old VAT payment

Question asked by Dave Gibbs 8 years ago

Hi all, I hope someone can help me with this. I have recently starting running my accounts through CB (since 01/01/2017) my account has been completing vat returns(Nov - Jan being the latest) with this there is a vat payment to be made for x, but also on top of this my accountant has advised I need to make additional payments for backdated vat of y, so a payment was taken from HMRC for one figure (the total of x+y) how is best to allocate this down from the bank imported transaction?

Technically a very small part of this would fall part of my CB accounts (just vat in jan) and the reminder would be previous to CB (Nov/Dec & repayment)

Thanks in advance.

2 Replies

Hi Dave - the best thing would be to allow your accountant into the books to do the necessary adjustments him/herself.

Unless 31 December is your financial year end, It really is fiddly starting your books in any system part way though a VAT period.

Ideally you or your accountant should bring in all the accounting balances at 31 December (using "Dashboard > Getting started") and these will include the old VAT "y" sum and the November-December VAT liabilities, in the "VAT control" account. You can then create a mini one month return in CB for January which will create a bill to HMRC. The bill plus the Nov-December balance plus y can all then be "explained" when the one sum leaves the account. In other words you call up the HMRC supplier and pay off the bill, which leaves the balance to go to the VAT control account to pay off y + Nov-Dec.

Hope this helps.

Paul, thanks again for your assistance with one of my questions.

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