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JonSut1
Level 1

VAT return, bounce back loan is showing as needing a VAT payment

I am trying to file my VAT return and the £30k bounceback loan is showing and I need to pay £4200 VAT, even though I have not made any sales in the VAT period. I am on the FRS VAT system, so cannot reclaim. Is this correct ?

3 REPLIES 3
John C
QuickBooks Team

VAT return, bounce back loan is showing as needing a VAT payment

Hi JonSut1 We recommend that you account for the loan by creating a deposit to an income account however select No VAT in the amounts are field. There may be transactions that you have allocated VAT codes to and therefore an amount is showing as due. You'r not able to reclaim VAT unless the transaction is relating to an asset purchase of 2000 GBP or more.

JonSut1
Level 1

VAT return, bounce back loan is showing as needing a VAT payment

Hi

I don't fully understand, I followed the online info about setting up a journal and things, with the VAT code as Sales Exempt, but this has put it into my return and saying £4200 to pay ?

katherinejoyceO
QuickBooks Team

VAT return, bounce back loan is showing as needing a VAT payment

Hi there, JonSut1.

 

Thanks for getting back to us, @JonSut1. I'd be glad to help you add the reclaimed VAT of your return. 

 

  1. Go Taxes and click on Prepare return.
  2. Click the Adjust option next to the Box 4 amount.
  3. Enter the Adjustment amount.
  4. Add a memo about the adjustment.
  5. Click Save.

 

Read these articles for your reference in case you need more information about VAT:

 

 

Don't hesitate to go back to this thread if you need further assistance.