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Post Info TOPIC: VAT adjustment
Silly Digits


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VAT adjustment
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Hi

I need to reclaim some VAT on a clients next VAT return, as paid over too much.

This is going back about a year.  Approx £1200.

How would I enter this adjustment, as the sales figure in last years accounts should of been £1200 less.

Getting confused.  Should a journal be posted, if so what date should I use and what tax code etc

 

Thanks

 

 

 

 



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FoxAccountancyServices


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I personally would adjust the next VAT return and put the adjustment in the current year's accounts - which I assume are the following set. You could use the date of the return as the journal date - you say you have overpaid? Which suggests the journal needs to be CR sales, DR VAT??



-- Edited by FoxAccountancyServices on Monday 16th of March 2015 04:08:06 PM

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Silly Digits


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Thanks Michelle

Sorry for delay.

When I do the journal for the adjustment would it be as follows?

Cr 4000 Sales (what tax code would I use T1 or T9)
Dr 2202 VAT T1






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Cheshire


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Just thinking out loud a bit here - if you T1 the entries then wouldnt they will include the VAT on £1200 on both sides of the entries to the VAT return? I would suggest T9 for both. Try it out - do a backup, key with T1, check the VAT, then restore and try as T9 and see the difference?

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FoxAccountancyServices


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Silly Digits wrote:

Thanks Michelle

Sorry for delay.

When I do the journal for the adjustment would it be as follows?

Cr 4000 Sales (what tax code would I use T1 or T9)
Dr 2202 VAT T1

 

 

Sorry been mad busy too!!

Are you on cash accounting or standard?

Do you have the "customer refund" option on your Sage?

 

I can tell you the exact way if I know that



-- Edited by FoxAccountancyServices on Tuesday 24th of March 2015 01:18:50 PM

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Silly Digits


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Thanks for the reply Michelle. Using cash accounting. Yes do have that option. The following jnl seems to work ok: Cr 4000 T1 Dr 2200 T1 This gets the vat to reclaim on the vat return. Do this sound ok, sorry can't even think straight as looking at too much!!

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