Let me discuss some insights and information with adjusting your VAT return using QuickBooks Online, Sarmc24.
If you need to correct errors on past returns, consider adjusting your current VAT account. This applies if the errors are below the reporting threshold, are not deliberate, and occurred within the last 4 years. Additionally, you must report any errors that do not meet the above conditions to HMRC.
Keep in mind, that any changes to your return will impact your VAT control or VAT suspense account. It’s advisable to consult with an accountant before making adjustments.
To adjust VAT boxes 1, 2, and 4, please follow the instructions below:
- Sign in to QuickBooks Online as the current primary admin.
- Go to Taxes, and select VAT.
- Next to the period you're submitting for, click Prepare return.
- Next to the VAT line, you'd like to change, hit Adjust.
- Choose an Adjustment Date and Tax rate.
- Note: If you don't choose the right VAT code, it won't appear on reports or your tax return.
- Select Adjustment Account ▼.
- Choose an account.
- If you're making an adjustment because you received credit and owe less tax to the government, choose an income account you created for this purpose.
- If you're making adjustments to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
- In the Adjustment amount section, enter the amount of the adjustment.
- Enter a Memo to describe the adjustment. It's good practice to include this since it will help identify the adjustment.
- Click Save.
Moreover, if you're on Flat Rate VAT, you can't change the VAT boxes 6, 7, 8, and 9. I suggest consulting your accountant before performing the corrections and guiding you through the adjustment process.
For a comprehensive understanding of the process, please refer to this article: Make VAT adjustments in QuickBooks Online.
Furthermore, to ensure your VAT return is correct, you may refer to this article for more insights and information on running the VAT Detail report.
If you have further questions about tax-related concerns in QuickBooks Online, please feel free to reach out. I'm here to help. Cheers!
