Manual VAT Rate

Manual simply lets you override the default %'s, the item will still appear in your VAT return if you've selected the correct VAT treatment.

Hi Kevin,

Can you explain more about VAT Treatment!

Thanks

Paul

I'm posting from my mobile in bed so can't give screen shots or expand too deeply - one needs his beauty sleep after all.

Presuming it's a UK purchase and you simply need to override the VAT amount for whatever reason, you need to be selecting goods/services from UK supplier in the VAT treatment drop down (can't remember if that's the exact wording) then manual in the rate section followed by the amount of VAT you need to apply to the expense.

Thanks Kevin,

I think I need to look into this deeper as quite a number of historic expenses entries have not appeared on my vat returns, but when I look at the expense form they look the same as ones that have gone through and appear on vat returns.

I'll let you get some sleep, but may post a gain when have dug deeper.

Thanks again

Paul

Thanks Kevin.

I think my mistake might be that I have sometimes created a bill instead of an expense and therefore not selected the correct VAT treatment.

Q1. What is the difference between creating a Bill and Expense? Q2. Quite a few of the 'Bills' that I appear to have created 'out of scope of VAT return' what is the best way to correct this so I can claim back the VAT bearing in mind the VAT period they were purchased has passed?

Paul

Bill/expense doesn't matter in all honesty in terms of VAT but the 'outside the scope' bit obviously does.

Best way to correct?? Hmmm.....

How many are we talking?

Hi Kevin,

i think what has happened is that the 'Supplier' (me) in Expenses Form, by default is assigned to 'Out of Scope' instead of 'UK supplier' and I've not noticed it when completing a form.

Unfortunately this effects approximately 150 expense forms from April 13 to date. What I'm not sure about is why some are not effected when using the same process, but I'll have to dig further to understand this.

Any help you can offer would be much appreciated.

Regards

Paul

Not that it really matters now as the damage in terms of workload is done but can you confirm if this is how you're submitting your expenses (i.e. Selecting yourself both as the supplier and as the person submitting the expense):

Hi Kevin, yes indeed, albeit the descriptions in each field is different, not that this matters I'm sure.

Regards

Paul

Arrr ok, that's the issue you've got then (just so you know so you can correct it going forward). The 'receipt from' box is the supplier, 'employee claiming' is you. Having the right supplier in there would of course pick up the correct VAT position.

A couple of questions then:

1. Would you be able to pull a list of the expenses in question and work out what VAT's missing?
2. Have you filed any accounts since the problem began in April 13?

A1. Yes, I can. A2. I submitted my last Tax Return for 2012/2013 in Jan 2014 and will be submitting my 2013/2014 Tax Return in Jan 2015. I have of course submitted my VAT Returns every 3 months since Apr 13.

Ok, that's good (in the grand scheme of things) as no amendments we make now will make any difference to accounts you've submitted. We do need to act fairly quick though to ensure your 13/14 accounts go in on time.

As for the VAT returns themselves, unless the corrections are huge it's not big deal, we'll just make an entry so it corrects itself on the next return.

Ok, you need to make a list of the expenses. I'd need to know:

1. Which accounting year they fall into (feel free to supply exact dates if you've got the info to hand but not really needed)
2. The total amount of the original expense
3. The VAT that should've been claimed
4. Which 'account' each expense belongs to i.e. travel/stationery/telephone etc (not essential if not easily available but would be handy).

We can then look to post a couple of journals to rectify the situation.

Hi Kevin,

It may take me a little while to compile, I also have and urgent client job to complete today, I'm a cameraman and editor.

If i get onto it after my client job may i get back in touch ?

By the way you have been a great help, are you a self employed Accountant?

Regards

Paul

Pleasure. I most certainly am, you can find my details at the top right of that mobile screenshot I posted last night.

No huge huge rush on putting it all together, so long as it's done before the Xmas break you'll have plenty of time to make the adjustments and file on time.

I'll get an auto response email on here so just post whenever you're ready.

Thank you Kevin,

You've gone into so much detail and explained this far better than I ever could have. Much appreciated. Paul, if you should need anything further at all please do let me know.

Many Thanks

Chris

Fantastic, I've bookmarked your business website and will take a read through after my edit.

Thanks again for all your help.

Speak soon

Paul

Thanks people....