Rounding in UK Vat return

Boxes 1 to 5 of a UK vat return require that pennies be entered.

The VAT report rounds to whole pounds.

Is my setup incorrect ?

I have aleady reported this to @lubos. I am just waiting for him to confirm that I need to edit the VATReturn.cs file on the github site. I think he changed Manager for all countries as most countries presumably expect to round off to the nearest 1 as it were. I don’t think that he realised that HMRC expects us to put pennies for boxes 1-5 and only boxes 6-9 are actually rounded off.

When I have five minutes and the developer says ok, I will update the cs file to make the UK VAT Return work as HMRC expects it to.

Thank you.

Have you also noticed that the VAT return and the detailed calculations are inconsistent when a purchase credit note is received.

The VAT return deducts this from input tax ( as I would do) but the VAT workings report adds it to output tax.

I have not noticed that, but I have not actually returned anything to a supplier as yet. However, I have a similar issue with an item that I have written off in inventory write offs. It seems to be putting in the Vat incl amounts on the Summary Page and showing me as owing VAT which is incorrect. I have notified the developer of this in another thread. No doubt that your problem is linked to the cause!

I’m not aware of this issue. Which thread mentions this?

By the way, as I said, feel free to edit anything in VatReport.cs file. The reason why I made it available is to encourage contributions.

You can have a look in Australian tax report how rounding is done since there is similar requirement.

I will make the changes when I have five minutes @lubos. I have an accounting meeting on Friday so I will try and get it done before then.

Here is the post regarding the inventory write off issue that has occurred since I updated to pretty much the latest version. I think that your fix for inventory writeoffs for cash versus accrual has fixed that issue, but caused this issue - I am guessing and this may be related to the OP’s issue as well.

Latest update issue with inventory write off

This issue you have reported is unrelated to this one.

@DanCarlin, can you explain in detail what you expect to see and what Manager shows? You can also post screenshots.

Ok I had assumed it was. If it helps. On my computer I have version 16.3.49 and this is showing the problem where obsolete inventory is including vat. On my laptop, with an identical version of the accounts - ie no changes, the version is 16.3.26 - and the obsolete inventory is correct in this version as is the VAT. So something between version 16.3.26 and 16.3.49 has affected inventory write offs. Hope that helps. Thanks

I have sent two pdf files to you by external email

These are prints of the reports within manager

The overall VAt is correct but you will note that the Credit note received from a supplier causes an apparent difference in Output and input tax

@DanCarlin, the way I see it, UK VAT return is correct. Credit note from supplier shouldn’t be inflating your VAT on sales. It should offset VAT on purchases which UK VAT return does.

@dalacor, could you create test file which has inventory write-off transaction which involves VAT? Do you see this issue in isolation in the latest version?

I have created a dummy account and I have found the cause. On the old version, if you go to inventory write-offs and select new write-off or edit new write-off. it makes no difference is you include VAT. On the new version, if you include VAT, then it shows the incl VAT amount on summary page and shows as owing tax when I don’t. When I remove the VAT on the inventory write-offs then the amount is what is should be.

I speak under correction, but I believe that one should be including VAT on the inventory write-off, but either way it should not affect the summary page? Do you want me to email the test account so that you can see?

Yes I agree. It is the detailed report which shows incorrect figures.

In my example where there is only one credit note it is easy to manually adjust the totals but this would be difficult if there was dozens of credits.

Can you adjust the detailed report so that the credit notes appear as a negative within the Input tax columns?

I presume the same thing may happen if a sales credit note is issued.

Normally you shouldn’t be using tax code on inventory write-offs. The only exception is when you are writing off inventory because you have used it for personal purposes. In this case you need to use tax code to reverse VAT on previous purchase (you can’t claim VAT back on purchases for personal purposes).

So what Manager is doing now is correct.

I will send you my accounting file tomorrow with what to look at. While you may be correct, what is happening is only affecting the summary page! The VAT Returns are not indicating any change in tax owing or paid - they are identical to all my last four returns. However, the sales figure in the one is £18 higher than it should be! This is the product that the client returned, but it clearly is still being included in sale figures. However, if I remove the VAT in inventory write offs - the sales figure returns to what it should be!

I am not sure what is going on, but something somewhere is not quite right - the VAT returns are not matching what the summary page says as far as tax paid/owing regardless of accrual or cash and surely including the tax it should not affect the sales figure in the VAT return report?

I will look at this tomorrow.

@lubos I have emailed you the inventory write off file so you can have a look and see what you think. thanks

@lubos my accountant has confirmed that HMRC expects boxes 1-5 to be calculated to the last pence, we can’t just round off to the nearest Pound. Anyway, I think that I have fixed that in the file on github.

Rounding in UK VAT Return has now been fixed to show pence in boxes 1 to 5. Just upgrade to the latest version of Manager.

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