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C
ChristopherD
July 22, 2024
Question

Incorrect VAT Calculation

  • July 22, 2024
  • 1 reply
  • 0 views

The program has added together my figure for “collected on sales” and my figure “paid on purchases” to suggest that I pay HMRC the sum of the two figures. I am pretty sure that I am supposed to deduct the figure “paid on purchase” from the “collected on sales” figure and pay HMRC the balance, not the sum of the two figures. Something is clearly wrong. Any clues?

1 reply

C
CarlSJ
July 22, 2024

Let me share information on how QuickBooks calculates your VAT in QuickBooks Self-Employed (QBSE), @ChristopherD.

 

QBSE calculates your VAT on how you categorise transactions and how you've set up your Tax Profile. Let's review those categorised transactions to verify their correct Category:

 

  1. Go to the Transactions tab.
  2. Locate the transaction you want to edit and select the ▼ icon.
  3. Click on the Category or Type column to select the correct categories.
  4. Once done, click Save.

 

Additionally, let's download your Tax Summary and Tax Details to get an overview of your total Spending, Deductions, and Estimated Tax Payments for a specific Category:

 

  1. Sign in to your QBSE account.
  2. Go to the Reports tab.
  3. Select Download or View the Tax Summary and Tax Details.

 

However, if you've confirmed that you've set up your Tax Profile and categorised your transactions correctly but still encountered incorrect calculations, it's best to contact our QuickBooks Self-Employed Support Team. They can initiate a screen-sharing session with their tools and identify what causes the problem.

 

Moreover, you'll also want to check out this article to help you easily categorise your downloaded transaction in the future: Create a bank rule.

 

Feel free to comment below for any additional assistance with incorrect VAT calculation. We're here to lend a hand.

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