Referring back to a previous post about VAT on items purchased before being VAT registered, I setup my bookkeeping business Sept'07 and became VAT registered Sept'08 but didn't realise that I could reclaim the VAT. I did my first return for Sept'08 and therefore didn't add my VAT onto it. I worked out the VAT would be around £350, would I be able to claim this on my 2nd VAT return?
Also, for future reference, how would you treat this VAT from a previous financial year on Sage? Would you just add the net and VAT figures manually onto the VAT return or would you need to also put an adjustment through on Sage?
I think you are supposed to reclaim any VAT on your first return. You may be able to make an adjustment for errors in previous VAT return, but you will need to ring them up and explain.
If you made the purchase entries using the purchase ledger, you will need to raise a credit note to cancel the invoice you originally entered, using T9 if that's what you used on the invoice. Then raise a new invoice with the code T1. Don't forget to date both as at the original date.
Then go to your bank and pay a zero payment against both the credit note and the new invoice.
