So I have worked at this company for 3 months. I have learned a lot as this is my first job in accounting. So far I have learned how to record sales and purchase invoices, takings, wages expenditure, receipts and payments from the bank satatements as well as recording petty cash receipts to summarise what I have been doing. All this, I have did using VT transactions (the software that we use). The next step for me is to finalise VAT returns which I will get onto within the next year or so. Can anyone give me some instruction as to how this is done. How are VAT returns finalised on VT? As in: bank, PINs, SINs, CTXs, JRNs for wages all entered, what is the next step after that to complete a VAT return and submit it to HMRC? I am just curious about how to do this?
Replies (9)
Please login or register to join the discussion.
https://www.vtsoftware.co.uk/cashbookhelp/submitting_a_vat_return.html
VT has an excellent help section, have you looked here and are still seeking answers?
have you created a dummy business to test transactions and techniques, to improve your versatilty?
Once all the transactions are complete you create a VAT return for the correct period, you then save it and submit it to HMRC
I would just add that after creating a VAT return, you should check it using the Back-up Report before saving and submitting.
In VT, press F11 to bring up the Vat menu.
Click the link for 'new vat return'.
A screen appears with default dates - assuming all is up to date, for the latest quarter. Click 'continue'. There is your vat return.
You can then click on the input and output tabs to see all the transactions, including the % rate for each line.
When happy with the details, click 'save'.
Highlight the new vat return in the list of returns. Click the link to 'submit to HMRC'
To emphasise cpb99 excellent response (as with others), it's absolutely essential to save the VAT return (after checking the backup reports and editing if necessary).
If it's not saved, VT won't file it. Look also for an automatic journal suggested by VT to transfer to VAT liability. Accept that.
As stated earlier, VT "help" is real time and on-screen for you. Very clear and helpful.
First, I assume you have reconciled the bank first.
What we do when sending the details for a client to check is copy the output screen, which includes the Vat percentage for each line (there is an icon in VT to copy the screen), and post into Excel. Then make two copies of the worksheet, and sort one by amount, and the other by details. Then it is easy to a) focus on the largest amounts and b) focus by payee, and see all lines where Vat is not 20%.
Spotting errors easily will come with experience. Presumably someone will review the returns you do with you to start with until you are confident.
Some common errors that might happen:
Claiming VAT on tax payments/wages/bank charges
Claiming VAT on suppliers who aren't registered for VAT as the nominal code defaults to 20%
Claiming VAT on non UK services which should have reverse charge.
Correcting VAT errors on VT a doddle- if VAT- applicable you can right click and edit to suit. If (as Paul Hawes sets out well) you're outside scope then right click sorts that, too. But above all you MUST have VAT knowledge and I agree that supervision/checking/education is paramount.