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How do I historically add a VAT-able expense
I've just noticed that I forgot to claim mileage as an expense for the trip to a business lunch with a potential (now actual) client back in October 2007.
If I add this, will it throw off my VAT return? (i.e. add a little bit to the VAT ledger for which I can never claim since it was two periods back?)
Any ideas welcomed - or do I simply have to ignore this element? It's not much, but you know HMRC, every little helps! (or is that Tesco?).
If I add this, will it throw off my VAT return? (i.e. add a little bit to the VAT ledger for which I can never claim since it was two periods back?)
Any ideas welcomed - or do I simply have to ignore this element? It's not much, but you know HMRC, every little helps! (or is that Tesco?).
I’m excited
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Inappropriate?Currently, if you add this in it will alter the original VAT return figures, but you will see a carried forward balance which represents the correction.
This isn't ideal - we should offer a 'Draft' and 'Sent' status on VAT returns, just like invoices, but which locks the appropriate transactions. Your added claim would be reflected as a correction in a later return.
(This Draft > Sent thing would also help with the Timeline stuff we've been chatting about).
We've previously been reluctant to 'lock transactions down' but now that we're working more closely with our accounting partners (announcement soon!) that's exactly what they're asking us to do. So we will.
Doesn't help you right now, though. You could enter a mileage claim for a more recent period, with a note in the description about when the journey was actually done, I guess...
I’m confident we'll get there.
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Inappropriate?@Mike, there is no problem entering an old transaction in the current VAT quarter. Don't do it if it's more than three years old because HMRC will not allow it.
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this answers the question
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This answers the question
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This answers the question perfectly. Thank you Stuart. -
Inappropriate?@Stuart, thanks for that.
That works fine for out-of-pocket expenses (and I guess you would note the actual date in the description) but we still ought to have the facility to reverse and correct old bank transaction explanations I think. Say, if you forget to set the right VAT rate on a major purchase.
We are edging towards a pretty robust, but easy to use, solution in this area (and which will also handle similar 'locking' for Corporation Tax or Self Employment Income Tax etc) and which we need to keep our esteemed accounting partners happy.
Because if they're happy, we're happy!
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This answers the question
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@Ed, I'd be interested to see what you do re: locking. It's definately helpful to lock down from year to year and after returns are sent in, but anything more than this might be counter-intuitive (remember recanting invoices?). I'm confident you'll make the right decisions though and I look forward to FAC getting better and better :)
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