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Cat987654321
April 23, 2020
Solved

Credit Card Expenses Problems With Dates Being Excluded Out Of Vat Accounting Period

  • April 23, 2020
  • 1 reply
  • 0 views

We are on the VAT Cash Accounting Scheme. Could someone please help me with the following dilemma with making tax digital. My husband purchases most of his materials classed as expenses by credit card. and paying it off in full each month. When the credit card is paid off each month that particular payment gets included on the vat return. So for example the credit card payments which were made in Oct, Nov, Dec should have been included in the vat return quarter ending 31/12/19.   But QuickBooks did not include the expenses (materials) bought out of the Oct-Dec period. i.e. 29/08/19-30/09/19. Box 4 Vat to be reclaimed, and Box 7 Net value of purchases was incorrect. 

Therefore, we could not use QuickBooks to complete the vat return digitally, and the same thing will happen again for quarter ending 31/03/20 if we cannot resolve this issue. 

Is there a way to get the expenses included in the correct vat period? i.e changing the date, or doing something in the reconciling process. 

I would be very grateful for your help!

Many thanks. 

 

Best answer by MaryLurleenM

Thank you for coming back to me. 

 

I do not think the problem we are having is anything to do with our browser but the way Quickbooks includes /excludes expenses from the vat return. I still have to input some records manually but I thought I would wait until we could resolve the problem.

I completed the vat return  for 31 March manually again as I still needed to resolve the issue with how we can get the expenses bought by credit card included.

Just to clarify expenses bought by credit card sometimes do fall out of the open vat return but I have always included them if the credit card is paid in the vat return period. For example for quarter ending 31 March, payments made to pay off the credit card bill in January, February, March have been included on the vat return. The expenses (materials) were bought 3/12/19-10/3/20, and they were included on the monthly credit card statements which have been paid monthly in full within the open vat return.

Basically, the dilemma is happening because Quickbooks is  using the date when the materials were bought, where as I actually include them when I make the credit card payment.

I look forward to hearing from you. 

Many thanks.


I appreciate the additional information, Cat987654321.

 

You'll want to check with your tax advisor on what accounting preference to follow. If you need accrual or cash basis accounting.

 

You can also visit the HMRC website to see their VAT guidelines.

 

Check out these articles for reference:

Let me know if you have more questions.

1 reply

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GeorgiaC
April 23, 2020

Hi Cat987654321,

 

Thanks for joining us on the Community and detailing the situation so well.

 

The date which you enter on the expense is the date this will hit your return if this falls within your current open period.

 

Are the individual expenses recorded in QuickBooks when they are purchased, and is the credit card then paid off within the VAT period, or after? 

 

Thanks

 

 

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Cat987654321Author
April 27, 2020

Hi Georgia,

Thank you for coming back to me.

Firstly, just to confirm the credit card payments are always paid off in full each month; there are usually at least three, each vat accounting period.

The expenses have been entered in QuickBooks on the date in which they have been  purchased; they have either come across automatically for one card and for the other one we have manually input the date. The credit card will sometimes be paid off in the vat period but at other times it will be out of it.

For example on the current vat accounting period , one card was paid on the 28 January, but some of the expenses were bought and input on 12 December - 31 December 19, so I assume will not be included.

When I complete the vat return manually I always include the expenses detailed on the statement for which the credit card payment has been made regardless of when the expenses have been bought as the payment has fallen within the open period.

I look forward to hearing from you.

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CharleneMaeF
April 27, 2020

Thanks for providing additional details, Cat987654321.

 

If the expenses are within the VAT period, then they should be included in the VAT return.

 

Checking the dates of the transactions helps us to verify if it's within the VAT period.

 

If yes, then, performing basic troubleshooting steps can help us isolate if it's a webpage issue. Stored cache and cookies in the system can cause unexpected behavior.

 

To start, let’s try accessing your QuickBooks Online account using a private browser.

 

Here are the keyboard shortcuts:

 

  • Google Chrome: press Ctrl + Shift + N  
  • Mozilla Firefox: press Ctrl + Shift + P
  • Safari: press Command + Shift + N

 

If it works, you’ll have to go back to your regular browser and clear the cache to improve the program's performance. If not, I'd highly suggest using other supported browsers. 

 

I also recommend contacting our Customer Care Team to further check your transactions.

 

If you have follow-up questions, don't hesitate to let me know. I'll be here to help.

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