Once your bookkeeping transactions are up to date and correct up to and including your VAT quarter end, you can then run the VAT return in FR Books.
To do this, go to Reports > VAT Returns.
Click 'Add New VAT Return' and enter the dates for the VAT period. If it is the first return since VAT registration, this period could be a long or short one, but any subsequent periods will be quarterly and FR Books will auto-populate these dates going forward.
Click 'Create VAT Return'.
The VAT return will then be calculated. Box 5 is the difference between the VAT charged to customers and the VAT charged by suppliers and is the amount either due to, or to be reclaimed from, HMRC. The return also shows the total value of sales and the total value of purchases. Detail of the figures in box 1 and 2 can be viewed by clicking on the magnifying glass icon.
If you are happy that the figures are accurate, you can click 'Save & Lock'. This will prevent any transactions included in the VAT return calculation from being edited. This is important as it avoids potential discrepancies.
Once your return is locked, the option to export the return to Excel or PDF will be visible. This gives a full breakdown of the VAT return calculation and is useful for checking that everything included is correct. If errors are found, the return can be unlocked to make corrections and then locked again.
The box 5 figure (amount due to/to be reclaimed from HMRC) will now be in the correct category. In the bank, VAT payments to HMRC should be categorised to 'VAT Owed to HMRC'.
To learn more about submitting your VAT returns to HMRC click here.
Viewing your completed VAT returns
You can view/edit/export all previous VAT returns by going back to Reports > VAT Returns.
