We have the problem where we used the VAT computing system in Quickbook 2016 DT but never actually filed through the program but uploaded it manually. There fore we have a large outstanding sum according to the program. My query is how can we zero this return? Or can we still file it now and it will tally with it being filed seperatly? I dont want to file through the VAT system is QB and confuse HMRC into thinking we still owe the balance that quickbooks is showing. Thanks in Advance.
Thanks for contacting us here in the Intuit Community!
The situation you mention here is quite a common one, especially with Making Tax Digital now here.
The best way in which to clear off the whole amount of VAT which was not filed in QuickBooks is to do a 'Paper or other filing method' filing in QuickBooks Desktop, and then pay off the outstanding HMRC supplier balance with a supplier credit. This will ensure that the supplier balance, and bank account remain unaffected by the change.
Below are the steps on how to do this.
1) Click on 'Vat' on the top tool bar, and then select 'File VAT.'
2) This step will display your cumulative vat figures which have not been filed in QuickBooks.
3) Once here, click 'File return,' and select paper or other filing method. Continue and then click 'O.K; to make the manual filing. ( this will not be sent to HMRC)
4) This will then create a supplier balance against the 'HMRC VAT' or 'HM Customs and Excise' supplier in QuickBooks.
5) Create a supplier credit by going to create a new bill , and then selecting 'Credit' in the top left corner.
6) Mark the supplier on the credit against the HMRC Vat suppler, and then place the credit amount to match the full amount of the large VAT filing, and save this credit.
7) Then, go to 'Suppliers,' 'Pay Bills,' and then select the HMRC Vat supplier. Use the credit to pay off the 'Bill' which was created by the Paper VAT filing you created.
Once done, your VAT balance will be down to zero, and this will not reflect on the supplier balance summary report, and the credit will prevent this from affecting the bank account.
I hope this helps, but if you have any further questions don't hesitate to write back.