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S
SDRhodes
March 30, 2019
Question

Entering VAT paid in arrears

  • March 30, 2019
  • 1 reply
  • 0 views

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.

1 reply

A
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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