A client has had some issues with VAT code set up which are now resolved. Because the codes are now posting correctly, the last several years worth of zero rated transactions have posted to the current VAT return. HMRC are being made aware of the previous inaccuracies, so is it possible to manually adjust box 7 so that only transactions for this period are shown? Or do I ignore the balance carried forward and just submit this period's transactions to HMRC? Many thanks
Box 7 is not so important as 1 & 4 but if you have correctly set up the vat codes and more importantly the vat items then the vat period will be correct.
There should not be any adjustment unless you mean to past period already filed and HMRC would now be aware of .
Or are you saying that the changes to correct vat codes have resulted in an exception report where all the correction have posted through to current period skewiing the box 7 figure.
If so then the vat exception report will also have posted the zero figures to the other boxes notifying, HMRC of the issue would be all that is necessary as the exception report is available for proof.