Entering VAT paid in arrears

SDRhodes · ‎March 30, 2019

I started my company in August last year (IT Contractor) only hoping/expecting to operate it for a few months. That hasn't transpired and I went over the VAT threshold in December 2018 when I registered for VAT. I have received a payment for VAT due from that date which is the VAT that should have been on my invoices since December. How do I record this as an invoice with an associated payment? Logically I want an invoice that has no value but £12000 worth of VAT so it goes into the correct account in the books. Hopefully this makes sense and somebody more able than I can help.

Anonymous · ‎March 31, 2019

Hello,

You’ll need first to manually calculate the invoice amount that could come up with the VAT of £12000. For instance the VAT rate is 20.0%, you can enter an invoice amount of 60,000 to get 12000 of VAT. To exclude the 60,000 amount from the total, you can create another line with the -60,000 to offset the amount.

I’ve attached a screenshot below to further illustrate the steps. I’d would still suggest consulting your accountant to record this properly in your books.

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Entering VAT paid in arrears

Entering VAT paid in arrears

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