Flat Rate Vat adjustment

Hi JD01234, 

Thanks for your post - can I check which box on the return you made the adjustment against? 🧐

Box 1 

Welcome back to our forum, @JD01234,

The posting of the adjustment in the Liability Account, depends on the Adjustment Account selected for that entry. If the purpose of the adjustment is to decrease the payable, like if you received a credit and you owe less VAT, use an income account for it.

This is an example an adjustment created with an income account:

An increase in the liability results from using an Expense Account for the adjustment. To correct this, go back to the adjustment and verify the account used and recreate it when necessary. Follow these steps when recreating the adjustment:

1. Go to the Taxes menu, and then open the VAT page.
2. Select the  Prepare return for the period you are submitting for.
3. Click the Adjust link in the VAT line that you want to change.
4. Choose an Adjustment Date and VAT rate.
5. For the Adjustment Account ▼, choose an income account to reduce VAT owed.
6. Enter the Amount of the adjustment.
7. (Optional) Add a memo if needed.
8. Press Save when done.

You can also refer to the steps in this article for reference: Adjust your VAT liability

Let me know the result after checking on this. I'll be right here if you need further assistance with the adjustment or anything QuickBooks related. Have a nice day!

Good morning,

Thank you for your informative response 

After reading through your advice I noticed that I did indeed post to an income account, but...

To ensure the amount was deducted from the vat return I placed a minus in front of the amount to adjust the vat to be paid.  

Am I correct in thinking that this has therefore increased my income account rather than decrease it?

My accountant was incapacitated so I had to do the return thinking it would be easy enough