What to do when HMRC takes a different amount than shown on a VAT return

In QuickBooks Online, you can correct your past VAT returns by adjusting your current VAT account, @vhopkins.

To ensure the VAT return reflects as fully paid, since HMRC deducts a lesser amount through your direct debit, you can adjust Box 1 to clear the balance. However, it’s recommended to consult your accountant for accuracy and proper guidance.

To adjust, here's how:

1. Go to the Taxes tab and select Returns.
2. Locate the VAT return you want to update and click View return.
3. In Box 1, click Adjustment and enter the Adjustment date.
4. Choose the appropriate Tax rate from the dropdown menu.
5. Select an Adjustment account:
   • Income account: Use this if you received credit and owe less VAT.
   • Expense account: Use this for fines, penalties, or interest you want to include in the VAT return.
6. Enter the Adjustment amount.

For additional information, you can check out this article: Make VAT adjustments in QuickBooks.

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Thank you. That's really helpful.

Hello there, Vhopkins.

Thank you for coming back to let us know how much you appreciated my colleague’s help with correcting your past VAT returns. We’re glad we could help you resolve your issue. Hearing your positive feedback encourages us to keep providing great support.

Additionally, we'd like to share this article to help you with recording, adjusting, and deleting VAT payments: Manage VAT payments.

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