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Rob Cummins

VAT Return

SOLVED
Posted By

I'm trying to do my May/June VAT Return. This is my first time doing it on Sage 50.  When I ran it this morning I was shocked to see how much it was as it had jumped by at least €15,000 since last week & I hadn't input any sales invoices over the weekend. I have checked both my Sales & Purchase Control Accounts and they are what I expect them to be but when I run the VAT Return it comes back with a figure that doesn't make sense so I'm completed freaked out.  I've made sure to put in the correct Custom Range of dates.  Am I missing something else I need to check perhaps?

  • +1
    verified answer

    Hi Rob,

    Thanks for using Sage City.

    To check the figures on your return, you will need to run the VAT reconciliation reports.

    This article will help you go through it: Reconcile the VAT Return 

    I hope this has helped. If it does, then please click Verify Answer. 

     
    Regards,
    Mark
    Sage UKI

  • 0

    Thanks Mark although since my initial message yesterday I did more cross checking.  I had entered lodgements from 26th to 30th June which had to be allocated to sales invoices from the first week of July as there were none outstanding for June.  I would have assumed that the VAT due on these July invoices would go on to the July/August VAT return.  I am using Cash Accounting so I suspect this could be the issue. I've queried it again with the Accountant as I was instructed to use Cash Accounting but I'm beginning to have my doubts.

  • 0 in reply to Mark Rutherford

    Thanks Mark although since my initial message yesterday I did more cross checking.  I had entered lodgements from 26th to 30th June which had to be allocated to sales invoices from the first week of July as there were none outstanding for June.  I would have assumed that the VAT due on these July invoices would go on to the July/August VAT return.  I am using Cash Accounting so I suspect this could be the issue. I've queried it again with the Accountant as I was instructed to use Cash Accounting but I'm beginning to have my doubts.

  • +1 in reply to Rob Cummins
    verified answer

    Hi Rob,

    Thanks again for using Sage City.

    You are right in your suspicion that it is the Cash Accounting scheme, that has increased your vat return.

    With this scheme, the VAT shows on your return, as soon as you post the monetary value with a vatable tax code. So even though it was payments on account, that I assume you were posting, as long as they are dated within that return, then they will appear, even if they haven't been allocated.

    Had you been on Standard VAT, then this wouldn't have occurred, as the payments would have gone on via the T9 tax code by default, and therefore not affected your return.

    If you are in doubt as to which scheme you should be using, then definitely have another conversation with your accountant. 

    If this has helped, then please click Verify Answer.

    Regards,
    Mark
    Sage UKI

  • 0 in reply to Mark Rutherford

    Mark,

    Thank you very much for your help.

    Rob

  • 0 in reply to Rob Cummins

    Hi Rob,

    No problem at all and happy to help.

    Take care

    Mark

*Community Hub is the new name for Sage City