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Level 1

VAT Suspense

I filed my first VAT manually using the accruals method.  

 

I then started using Quickbooks and loaded all transactions for the previous year.  When I came to reconcile/validate the VAT filing and payment, there was a very small difference (overpayment) which is now sitting in the VAT suspense account.  This is because Quickbooks is using the cash basis.  I therefore overpaid on box 1 and overclaimed on box 2.

 

I need to correct this overpayment on my next VAT return so that my cumulative VAT is correct.  How do I do this?  I clearly have to make an adjustment on the next return in boxes 1 and 3 but I do not know which adjustment code to use.  I also have to adjust boxes 6 & 7.  I am also unclear as to how the VAT suspense will be cleared.

 

Thanks

Solved
Best answer October 16, 2019

Accepted Solutions
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QuickBooks Team

VAT Suspense

Hi KeelsM

 

If you want to adjust a sales box you can create a income account and if you would like to adjust an acquisitions/purchases box you can create an expense account. We must make you aware that we are not accountants as this verges on professional advice we advise you to qualify the above with an accountant.

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3 REPLIES 3
Highlighted
QuickBooks Team

VAT Suspense


Hi KeelsM

 

The VAT suspense is cleared when you record the payment. If you have overpaid, hence there is an amount showing in the VAT suspense account, you will have to underpay on the next return by the amount sat in the suspense account.Adjusting the boxes will affect the control account.

Have you actually submitted the return to HMRC as if you have just marked it as filed we could do an unfiling to correct the error?

 

 

Highlighted
Level 1

VAT Suspense

Thanks.

What adjustment accounts do I use?

Yes, I did submit the return to HMRC but obviously haven't submitted the one due for the October q/e.

Highlighted
QuickBooks Team

VAT Suspense

Hi KeelsM

 

If you want to adjust a sales box you can create a income account and if you would like to adjust an acquisitions/purchases box you can create an expense account. We must make you aware that we are not accountants as this verges on professional advice we advise you to qualify the above with an accountant.

View solution in original post