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V
VAZ
April 15, 2024
Question

HMRC Investigation - LinkMyBooks

  • April 15, 2024
  • 1 reply
  • 0 views

HMRC are investigating our VAT records.  We are Amazon seller  and use LinkMyBooks  (LMB) to send all data to QB. However, when I subscribed to LMB, I expected 12 months of historical data to be pulled from our marketplace. But, I made the mistake of only selecting a non-premium plan which only drew 3 months' worth of data.  Basically, there's about 6 months of missing data.  

 

LMB has advised that I can Rollback the settlements ( which contains all costs breakdowns and incomes) - ie. all data will be deleted on QB.  Then I can re-send again, which will then populate.

 

The difference we are looking at is about £58K of VAT we owe. 

 

My question is that once we Rollback and re-send the settlements from LMB....everything on QB will change.   How will these changes affect my VAT . ie. will the additional VAT to due on Purchases and Expenses will be carried forward to now? 

1 reply

C
CharleneMaeF
April 15, 2024

Hi there, VAZ. 

 

My main goal is to ensure your VAT record is accurate. I'm here to share insights about this matter.

 

QuickBooks Online (QBO) is dependent on the data you downloaded from Link My Books (LMB). The program will automatically add the Amazon entries, break down all sales and fees, check tax jurisdiction for each transaction, and apply the correct tax rates chosen during setup.

 

When you roll back and re-send the 12 settlements to QBO, the changes will affect the VAT amount if there are transactions that have VAT rates applied.

 

You can check out this link to help you determine what specific plan to select and its cost: Connect Link My Books.

 

Additionally, I've added an article to help you electronically submit your VAT return to HMRC: Submit a VAT return to HMRC using MTD in QBO.

 

The thread is always open if you need additional assistance managing VAT. My team and I are ready to assist you. 

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