Skip to main content
F
Faith no More
March 25, 2021
Question

found out today that if you use cash accounting to do your vat you have to manually add any reverse charge vat to your return

  • March 25, 2021
  • 1 reply
  • 0 views

Found out today that if you use the Cash Accounting Scheme to do your VAT that any Construction Industry reverse charge monies you owe to HMRC has to be added to the Vat Return Manually !!!!  i only Know this because the amount of vat i owe for this quarter did not alter when i did my first subcontractor payment this morning so was looking to see what i had done wrong then i read that if you use Cash Accounting you have to add it manually or change to standard accounting for your VAT as i can wait 3 months for payments this is not an option , but how many people that do cash accounting in the construction industry are actually aware of this .... i certainly wasn't informed.... what are the chances that some people that have had no reason to delve into the help pages are going to underpay there VAT next quarter ..... COME ON QUICK BOOKS This needs sorting i shouldn't have to do half the job myself that's what i pay my subscription for  

I'm seriously thinking of moving else where as i've already had to alter my payroll journals every week because your program doesn't take into account the sml employers NI allowance even though it manages to account for it in the information it sends to HMRC !!! and even after an email to say the problem has been sorted its still not working for me, i have to wonder what else does it not do that it should do ...totally fed up!!

1 reply

IamjuViel
IamjuViel
March 25, 2021

I understand the impact of this specific feature to your business. @Faith no More.

 

Currently, we've been receiving reports about the inability to use CIS Reverse Charge  VAT codes in invoice line items. 

 

90.JPG

 

Our product team are working hard to resolve this. In the meantime, you can use the workaround available. In order to save your transaction, please use the following temporary workaround:

  • Please itemise the supplies and materials using "CIS Labour Gross (0%) - Sales Transactions (Invoice)
  • Please itemise the supplies and materials using "CIS Gross (0%) - Purchase Transactions (Bill)

Also, make sure to use a relevant memo/description so that the transactions can be traced and updated once the data-fix has been deployed in order for the transactions to be updated with the appropriate account.

 

To determine how the codes affect the VAT return, check out this screenshot:

 

1.JPG

Lastly,  you'd want to enable the VAT summary in your invoice so your contractor would see the exact VAT amount. Here's how:

  1. Go to the Gear icon.
  2. Choose Custom Form Styles.
  3. From the Custom Form Styles page, select the invoice template you're using.
  4. Click Action from Edit column.
  5. Select the Content tab.
  6. Click the Pencil icon to edit Footer settings. 
  7. Mark the VAT Summary tick box.
  8. Click Done. 

Also, if you choose to include VAT in the calculation, you can set the invoice to show it. Here's how:

  1. From the Edit invoices page, go to the Content tab. 
  2. Click the Pencil icon to Edit the Contents of the invoice.
  3. Make sure to mark the VAT tick box.
  4. Select the Show more activity options link.
  5. Put a checkmark on the Show tax inclusive amounts tick box.
  6. Click Done.

You can read through this article to learn more about managing your invoice template: Customise invoices, estimates and sales receipts in QuickBooks Online.

 

For more information about the domestic reverse charge, as well as some guides on how to handle an invoice in QuickBooks, I recommend the following article: VAT: domestic reverse charge for building and construction services.

 

Get back to us here if you have other questions or concerns. I'm always here to help.

Terms & ConditionsAccessibility statement