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Adjusting VAT returns
How do I make adjustments to VAT returns, I am on the flat rate scheme, however, ie. I have an asset I bought for £2800 in 2006, which my accountant advised VAT can be claimed back on.
I've already filed the VAT return with amended VAT due. However, I see no way of making this adjustment on the VAT Return form in free agent, which means my VAT liability is not correct.
I've already filed the VAT return with amended VAT due. However, I see no way of making this adjustment on the VAT Return form in free agent, which means my VAT liability is not correct.
I’m confused
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The best answers from the company
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Sorry - was it an out of pocket expense?
We've picked up a bug in our expense balance handling, which we'll have fixed in our next release 'Prosecco' on Tuesday night - these expenses should not be counted in your expenses owed balance but they currently are...
The company says
this answers the question
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Aha. Checked this out now.
Sorry, my misunderstanding. If your first VAT return in FreeAgent had
been your first ever, it would have taken it into account (FreeAgent
looks at 3 years of goods purchases prior).
Instead, you'll just need to enter a VAT Opening Balance (under
Settings > Opening Balances) of whatever the VAT paid on the purchase
was. Enter this as a negative number, since the VATman owed you money
;->
That should result in a negative VAT balance up to the VAT return at
which you made the adjustment.
Does that make sense?
It's good you entered the capital purchase anyway, to allow the
calculation of the depreciation which is still claimable as an
expense.
The company says
this answers the question
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@chocistar, could you email me with your account name - I'll get this checked out this morning. ed at freeagentcentral dot com.
I’m confident we can get this sorted out pronto
The company says
this answers the question
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If you enter your 2006 asset purchase as a manual bank account entry on that date, categorised as 'Capital Asset' it should be reflected in your first VAT return. You'll need to do this to correctly reflect depreciation in the accounts, anyway.
Our aim is to get the numbers spot-on rather than force you to apply adjustments, so do let me know if doing the above doesn't fix your problem and we'll investigate.
The company says
this answers the question
-
Inappropriate?If you enter your 2006 asset purchase as a manual bank account entry on that date, categorised as 'Capital Asset' it should be reflected in your first VAT return. You'll need to do this to correctly reflect depreciation in the accounts, anyway.
Our aim is to get the numbers spot-on rather than force you to apply adjustments, so do let me know if doing the above doesn't fix your problem and we'll investigate.
The company says
this answers the question
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Inappropriate?I've added the entry but any VAT liability offset is not reflected in VAT return. It doesn't seem like Free Agent allows for backdating of VAT inputs from as far back as 2006?
I’m undecided
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Inappropriate?@chocistar, could you email me with your account name - I'll get this checked out this morning. ed at freeagentcentral dot com.
I’m confident we can get this sorted out pronto
The company says
this answers the question
-
Inappropriate?Aha. Checked this out now.
Sorry, my misunderstanding. If your first VAT return in FreeAgent had
been your first ever, it would have taken it into account (FreeAgent
looks at 3 years of goods purchases prior).
Instead, you'll just need to enter a VAT Opening Balance (under
Settings > Opening Balances) of whatever the VAT paid on the purchase
was. Enter this as a negative number, since the VATman owed you money
;->
That should result in a negative VAT balance up to the VAT return at
which you made the adjustment.
Does that make sense?
It's good you entered the capital purchase anyway, to allow the
calculation of the depreciation which is still claimable as an
expense.
The company says
this answers the question
-
Inappropriate?I've added the capital purchase, how do I balance out the expense without having to add all expenses from previous years
-
Inappropriate?Sorry - was it an out of pocket expense?
We've picked up a bug in our expense balance handling, which we'll have fixed in our next release 'Prosecco' on Tuesday night - these expenses should not be counted in your expenses owed balance but they currently are...
The company says
this answers the question
-
Inappropriate?Yes, this was an 'out of pocket expense' for a Capital Asset Purchase. I needed to carry over the reclaimed VAT into the 07-08 tax year.
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