Backdated VAT using MTD

MrRobS · ‎September 29, 2021

I am submitting my first VAT return, and I have one expense (which I would like to claim back the VAT on) that was paid for 2 days before my effective date of registration. I believe that this should be recorded as an exception, but I am unsure of how to do it.

I have seen answers to similar questions that suggest making a dummy return for the month prior, but because I am signed up to MTD the return period is un-editable.

A simple fix would seem to be to alter the date of payment for this item by 2 days so that it falls within the relevant VAT period.

Would this be acceptable or do I need to somehow include this as an exception? If so, how?

Thanks in advance

emmam6 · ‎July 05, 2022

Hello MrRrobS, Thanks for asking about backdating VAT on your first return. We'd like to add to the posts here for you and for future readers of the Community. In the case where it is the first return you can do an adjustment in Quickbooks in the relevant box in the return to account for the expense. You would need to create a VAT adjustment account to use for this in the chart of accounts and then go to the return and adjust the box. We'd recommend consulting with an accountant before doing this. More information on how to do a VAT adjustment can be found here

View solution in original post

CharleneMaeF · ‎September 30, 2021

The Community has your back, MrRobS.

If your VAT return is already approved by HMRC, you'll have to make a subsequent VAT return and include the expense as an exception. To learn more about this, please see this article: VAT Exceptions and reports in QuickBooks Online.

Otherwise, I'd suggest contacting our QuickBooks Support Team. This way, they'll be able to provide options to handle your submitted returns.

Additionally, I've also included these articles that'll help you stay informed about Making Tax Digital (MTD):

Feel free to comment down below if you have any other concerns or questions about managing VAT returns, MrRobS. I'm always glad to help in any way I can.

MrRobS · ‎September 30, 2021

Thanks CharleneMae_F, I was rather hoping someone could offer some more specific advice.

I have read all the FAQs and guides and know what I should do...I just don't know how to do it.

All the solutions I can find rely on making a dummy return for the period prior to my date of registration, but the MTD service obviously doesn't allow this, so how do I get around it using QuickBooks?

Thanks

AbegailS_ · ‎September 30, 2021

Thanks for joining us here in the Community, @MrRobS.

I'd be glad to lend a hand to resolve your concern with your VAT.

Since you can no longer add and turn off your MTD, I'd suggest you reach our Customer Support since they have the tools to further help and provide you other options to claim your VAT.

Go to the Help menu at the upper right.
Select Contact Us.
Enter your concern.
Click Let’s talk.
Choose to Get a callback.
Type in your contact info.
Select Confirm my call.

In the meantime, I'm adding this article to further guide you in effectively monitoring your taxes in QBO: Manage taxes in QuickBooks. It includes topics about VAT, tax reports, and MTD to name a few.

Please know that you're welcome to comment below if you have other concerns or follow-up inquiries about claiming your VAT in QBO. I'm just around to help. Take care always.

emmam6 · ‎July 05, 2022

Hello MrRrobS, Thanks for asking about backdating VAT on your first return. We'd like to add to the posts here for you and for future readers of the Community. In the case where it is the first return you can do an adjustment in Quickbooks in the relevant box in the return to account for the expense. You would need to create a VAT adjustment account to use for this in the chart of accounts and then go to the return and adjust the box. We'd recommend consulting with an accountant before doing this. More information on how to do a VAT adjustment can be found here

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Backdated VAT using MTD