Hi,
I have just submitted my first VAT submission for the period 1st Jan to 31st Jan 2024. I wanted to include costs from prior to VAT registration.
Following other posts on the topic, I entered the pre-registration amount as a VAT adjustment into Box 4 on the return, and noted the amount of relevant sales in Box 7.
This has been submitted ok.
However, I now have issues with my trial balance.
The VAT control account is showing the adjustment amount twice - once from the original invoices which were input and dated prior to 1st January, and again from the adjustment I posted.
And also, my bank account is now wrong by the amount of the adjustment.
I also have an amount in VAT suspense, which is the amount on the return. So 3 questions:
1. I assume when I receive the refund from HMRC I will offset the amount in suspense, clearing this.
2. How do I clear the duplicated entries in the VAT control account, should I change the invoices pre 1st Jan 2024 to remove VAT as they were done on the adjustment and so not needed to show VAT on them?
3. How do I correct my bank balance?
I can't for the life of me figure out how to sort the bank balance now even if I adjust the original invoices to remove VAT, this isn't going to sort the bank balance. Do I just post a journal between VAT Control and the bank account?
Thank you!
