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Community Contributor **

Is it possible to manually adjust box 7 of the VAT return?

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

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Frequent Contributor **

Box 7 is not so important as 1 & 4 but if you have correc...

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.

Community Contributor **

Hi again, you might remember me from last week, this is t...

Hi again, you might remember me from last week, this is the same client I was asking about then. Some of the VAT items were posting to the control account which you resolved for me, but this has left a rather messy VAT return for the last period. The VAT item "Zero-rated purchases" was going to the control account and is now posting correctly to the liability account. So now box 7 has several years worth of zero rated purchases which have not previously been filed due to the VAT item going to the control account..... This clients accountant is talking to HMRC ref overclaimed VAT as there was a similar issue with the EGS code which had not been posting to Box 2. I was planning on adjusting box 2 and opening a separate liability account for overclaimed VAT, but cant see a way of tidying up box 7.
Community Contributor **

I meant to say that the zero transactions are not showing...

I meant to say that the zero transactions are not showing on the exception report as effectively they have not been filed due to the error in code setup.
Frequent Contributor **

Did you have any vat exception report for past period? Do...

Did you have any vat exception report for past period?
Do you have any dated back ups available?
Not applicable

According to HMRC box 6 and 7 are just as important as bo...

According to HMRC box 6 and 7 are just as important as box 1 and 4 as this determines if you have paid 20% of your sales over to them!  Why cannot there be an adjust button for these boxes as well as you cannot adjust this.  Is there any other way of doing his manually before MTD comes in in April 2019??
Frequent Contributor **

You can post transactions to add or subtract to these box...

You can post transactions to add or subtract to these boxes both 6 & 7 by using no vat code or exempt.
Boxes 6 & 7 are never 20% of the boxes 1 & 4 where to Vat codes other than standard 20% are used, reduced rate zero rate and exempt all post to these boxes.
Boxes 6 & 7 include all sales & purchases so anything here from outside Eu is here and not subject to Vat.
 
Not applicable

If you use No VAT then it will gross up the transaction w...

If you use No VAT then it will gross up the transaction which will be wrong.  I agree it will not fully be 20% of the VAT in boxes 1 & 4 due to reverse charge, exempt purchases etc.  However, if I post transactions to add or subtract these where will the double entry be as I do not want a creditor or debtor balance then showing on my ledger.    It does seem bazaar that you can adjust part of it but not all of it like you can in Sage for example.......