Ok, well that seems to make sense, but this situation has boggled my brain for some time - I guess I'll see what happens when I file my VAT at the end of this q...

The Balance Sheet for both years is now correct in terms of this error, it's just the homepage of the VAT centre says 'balance due for period *amount of correct...

Ok, so I've just reversed the changes (deleted the VAT adjustment), which has corrected the error with my balance sheet, but now my VAT balance is showing that ...

I'm really confused by this - I made the adjustment in the first place to ensure I filed the right amount of VAT, so in theory it should have balanced everythin...

So what would happen if I simply delete the VAT adjustment? It's still listed in Tax Account (Sales Tax) Transaction Report.