Can I adjust for Private Use % on the MTD returns?

QuickBooks Online (QBO) doesn't have an automated feature to apply a blanket private use percentage directly on the MTD return screen. Instead, it calculates return boxes based on the tax codes applied to individual transactions. However, you can make a manual adjustment for private use before submission.

Start by calculating the private portion outside of the program. For instance, if total recorded input VAT is £1,000 and private use is 20%, you need to reduce Box 4 (Input VAT) by £200. Once done, follow these steps to enter an adjustment:

1. Navigate to All apps, select VAT and click Overview.
2. From the Returns tab, locate the period you want to file and click Prepare return.
3. Review the VAT summary boxes. Look for Box 4 and click the Adjust link.
4. Select an Adjustment account in the dropdown.
5. In the Adjustment Amount field, enter the adjustment amount as a negative value.
6. You can also add a reason for the adjustment in the Memo section and then click Save.

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