Adjust your VAT Return

When you calculate your VAT Return, if required, you can adjust to your final VAT Return figures before you reconcile your VAT Return. For example, to correct a past error that meets HMRC VAT adjustment criteria. 

You can use the Adjustments option to make these amendments.  

Before you make adjustments

Check the Manual Adjustment control account:

1. On the menu bar, go to Settings then select Control Accounts.
2. For Manual Adjustments, enter the nominal code you want to use, by default this is 2204.
3. Click OK.

Calculate your VAT Return

Make a VAT Return adjustment

 TIP:  VAT Adjustments post automatically with the program date. To post an adjustment with a different date, change your program date. In v30.1 and above the adjustment uses the last date of the VAT Return period. 

1. In your VAT return for the period, after calculating the VAT Return, click Make adjustments.

2. In the box of the VAT Return to adjust, click the pencil   in the Adjustment column.
3. In the Reason field, enter the reason for the adjustment.
4. In the Adjustment field, enter the value to adjust the box by, then click Save.
   
   

   TIP: To reduce the box value, prefix the figure with the minus sign '-'.

5. If further boxes require adjustment, repeat steps 2 - 4.
6. Click Close.
7. On the VAT Return window, you can Add attachments to attach any supporting documentation.

The adjustments apply when you reconcile the VAT Return. If you close the VAT Return without reconciling, the adjustments don't save. You'll need to post them again after calculating the VAT Return.

Transfer the VAT Liability

When you transfer the VAT from the Sales and Purchase Tax Control Account to the VAT Liability nominal code, use the VAT Transfer Wizard.

If you post a manual VAT transfer, use the calculated figures, not the figures after the adjustments. This is because the adjustment journal posts automatically to VAT Liability.

The effects of an adjustment

VAT Adjustments don't affect the Sales or Purchase Tax control accounts. If your adjustment changes box 5, a journal posts between the VAT liability nominal code 2202 and Manual Adjustments nominal code 2204.

After reconciling your VAT return, you can journal any associated balance on 2204 to an appropriate nominal code. If you're unsure about which code to use, refer to your accountant.

• Print your adjustment report