Reconcile transactions for VAT that have already been included on a VAT Return

Reconcile transactions for VAT that have already been included on a VAT Return

If you have switched your VAT return software mid-way through a financial year, you might find that when you submit a VAT return that some of the older transactions submitted on a different piece of software might be pulling into your VAT return as earlier un-reconciled transactions.

There are a couple of options to solve this, both of which involve marking VAT return periods as submitted before connecting to HMRC and submitting your new VAT returns.

Mark transactions as submitted before submitting new VAT returns
If you know you'll be switching your VAT return preparation mid-year to LimeBooks, what we would suggest to do before you submit your first VAT return to HMRC is to import all transactions for the current financial year into LimeBooks that you've already submitted VAT returns for.

Once you've imported these into LimeBooks, in the business details section, enable VAT, and select the next VAT return period to be the first VAT return in the current financial year (that you have already submitted elsewhere), then head to the VAT return section, generate the VAT return, check it matches your VAT return submitted elsewhere, tick the box and click submit to mark the VAT return as submitted and reconcile the transactions for VAT purposes.

If you have already submitted multiple VAT returns in this financial period, generate the next VAT return(s) that have been submitted elsewhere and mark these as submitted too. Stop when you get to the next VAT return that does need to be submitted to HMRC.

Once you're up to date with the already submitted VAT returns, you should have no earlier un-reconciled transactions being brought into your next VAT return unless you've made changes since marking the transactions as submitted.

Mark transactions as submitted after already submitting new VAT returns to HMRC
If you have already started to use LimeBooks for submitting VAT returns part way through a financial year, but you didn't first follow the steps above to mark the previous VAT transactions as submitted, please contact us.

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