Hi, Thanks for your reply. The problem I have is that in the VAT Box 1 VAT due on sales and other outputs
the invoices and deposits are both being picked up , for example an invoice for £1500 is recorded , and then the deposit for that same invoice is also recorded as an income, therefore the system calculates that VAT on £3000 is due, whereas it should only be for £1500! I have looked at the way the payments are recorded, and I cannot see any difference between the way other invoices have been recorded as paid, which have not been added to the VAT report as an income. The problem being that inland revenue issue fines for late VAT payments, and I am not keen on submitting an incorrect VAT return.