We are partially exempt for VAT and the annual adjustment takes our box 4 figure negative (original figure £50k and adjustment £55k). We use Avalara to submit and this won't allow a negative figure in box 4. HMRC says it is a software issue, we can't submit through gov.uk and need to get software provider to fix.
Has anyone else had this issue or can recommend a MTD software that will allow a negative figure here?
Thanks
Replies (4)
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MTD software should allow a negative figure for boxes 1, 2, 3 and 4, but not 5.
Mine does.
I have recently had a VAT return with a negative Box 4 which the software quite happily submitted (Can't recall which it was now - VT or Xero probably) so it ought to be possible. I suggest you try John's software as in the post above.
I agree with Lion that overall it makes no difference but I really think that the adjustment should be going through Box 4 not Box 1 - it is an adjustment to input tax recovery and not an output.
I agree with Lion that overall it makes no difference but I really think that the adjustment should be going through Box 4 not Box 1 - it is an adjustment to input tax recovery and not an output.
It's crazy to apply that sort of logic to any HMRC return.
Negative entries just attract queries, imho, and I can do without the hassle.