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Debsaroo
January 30, 2024
Question

First vat return -suspense account help

  • January 30, 2024
  • 1 reply
  • 0 views

Hi, I submitted a claim alongside my first vat return for a refund on the vat on my last 4 years purchases. I made a slight error in my accounting and this led to a £2600 discrepancy in my vat return. (There was an error on my spreadsheet I created leading to an incorrect figure) This was all sorted with hmrc but it is now showing as a minus figure in my vat suspense account, how do I correct this?  all vat that was owed back to myself was refunded by hmrc,  Thanks 

1 reply

A
AileneA
January 31, 2024

Hi there, Desaroo.  

 

Thank you for reaching out to the Community and seeking help regarding the discrepancy in the VAT return. I'm glad to assist you with correcting the discrepancy in your VAT. One way to fix the discrepancy in the VAT return is by making VAT adjustments. VAT adjustments are made to rectify the mistakes on past returns with a VAT account.  
 

To make VAT adjustments, you must identify the error in the previous VAT return. Once you have identified the error, you can adjust it in the current VAT return. The adjustment will appear on your VAT return, which you can see in your VAT account. 
 

 

Once ready, follow the steps below to adjust your VAT return successfully:

 

  1. Go to the Taxes menu and select VAT.
  2. Tap Prepare return next to the period you're submitting for. Then, click Adjust next to the VAT line you'd like to change.
  3. Choose an Adjustment Date and Tax rate. If you don't select the correct VAT code, it won't appear on reports or your tax return.
  4. Select Adjustment Account ▼.
  5. Choose an account.
    - If you're making an adjustment because you received credit and owe less tax to the government, choose an income account you created for this purpose.
    - If you're making the adjustment to include a fine, penalty, or interest on a VAT return, choose an expense account, such as Interest Expense or Non-deductible Penalties.
  6. Enter the amount in the Adjustment Amount section
  7. Add a Memo to describe the adjustment. Then, click Save.

 

Furthermore, you can take a look at this article for the steps on what specific VAT boxes you want to adjust: Make VAT adjustments in QuickBooks Online.

 

To ensure the VAT adjustment is made correctly, I suggest consulting with a VAT specialist or an accountant. They can guide you through the process and help you identify any other errors that need to be corrected, ensure your books are accurate, and avoid messing up the data.

 

In case you need to manage your VAT adjustments in QBO by creating or deleting them. Check out this article for detailed instructions: Create or delete a VAT adjustment in QuickBooks Online.

 

Feel free to update me in this thread if you have further concerns about VAT adjustments in QBO. I'll be available to assist you further. Stay safe, and have a great day!

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