Resubmit a manual VAT Return using Making Tax Digital (MTD)

Summary

How to resubmit a VAT Return using Making Tax Digital in Sage Accounting after you submitted it manually.

Description

If you signed up for MTD but marked your VAT Return as submitted manually in Sage Accounting, HMRC won’t receive that return. You must submit the same figures again using MTD.

When you do this, Sage Accounting will post VAT transactions again. Reverse these duplicated postings to avoid incorrect VAT balances.

Resolution

Before you start, make sure you:

Authorise Sage Accounting to submit VAT Returns to HMRC using MTD
Make a note of the figures in boxes one to nine from your manually submitted VAT Return

▼ Step 1: Create a new VAT Return

You can’t resubmit a VAT Return that you already submitted manually. Instead, create a new one.

Go to Reports, then select VAT return.
Select Create VAT Return.
Check the VAT period from and to dates. These come directly from HMRC.
Select Calculate.

NOTE: If the dates are wrong, check that you’re connected to MTD. If the issue continues, contact HMRC.

▼ Step 2: Adjust the VAT return to match your manual submission

The VAT Return will show a nil balance because Sage Accounting already included the transactions in the manual return.

Adjust each VAT box so the figures match your manual submission.

Select Adjust on line one of the VAT Return.
Under Change VAT figure by, enter the figure from box one from your manual VAT Return.
Enter a reason for the adjustment, then select Save.
Repeat these steps for each VAT box until all figures match the manual return.

▼ Step 3: Submit the VAT return and record the payment or refund

Once the figures match, submit the return to HMRC.

Select Submit online to HMRC.
Select Save.
When prompted, select Finalise, then Submit.
Select Pay/Reclaim, enter the details, then select Save.

▼ Step 4: Make note of the duplicated VAT journal

Submitting the VAT Return using MTD creates duplicate VAT postings in your ledger.

Go to Reports and select Audit Trail.
Search for the VAT return with the below filters:
- The date is the last day of the VAT return period
- Under More, change the Type to VAT Return
- Change the Status to Exclude deleted
Select Calculate, ensure your looking at the Detailed version of the report.
Make note of the debits and credits for the VAT return journal with the Suspense (9999) code.
▼What a VAT Return journal looks like

▼ Step 5: Reverse the duplicated VAT ledger postings

Post a journal to reverse the duplicates.

Go to Adjustments, then Journals.
Select New Journal.
Enter the same journal you noted in the audit trail, but in reverse:
- Enter a relevant Reference, for example 'Duplicate VAT journal reversal'
- In the Date field, enter the same date as the Trx Date in the audit trail
- Enter the VAT ledger codes you made note of, with the opposite debits and credits
- You can leave the Details section blank
- Don't tick Include on VAT Return
Select Save.

This reverses the duplicate VAT postings and restores the correct ledger balance.

Solution Properties