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Adjustments to VAT boxes

Currently Kashflow does not let you make any additional adjustments to individual VAT returns.

A journal is not necessarily required as the accounts may already reflect any VAT correctly but this was not included in VAT returns. This is often the case for any fuel scale charges adjustments or for clients when they are switching to using Kashflow and preparing the first VAT return. A manual adjustment may be required to boxes on the return.

Sage currently has this function and it is extremely useful
  • Guest
  • Jan 10 2017
  • Will not implement
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  • Heulwen Thomas commented
    15 Nov, 2018 10:24am

    That's great to hear. This should prevent this issue arising in the future, however, what about the historical VAT errors which we may not uncover until after the MTD is implemented and would then not be able to submit a manual VAT return?

  • Julie Shepherd commented
    14 Nov, 2018 04:15pm

    Hi Heulwen,

    Part of the VAT improvements that we have been working on is how transactions that have already been included on a VAT return are handled in KashFlow, so the scenario you describe will no longer occur after the MTD update.


  • Heulwen Thomas commented
    14 Nov, 2018 09:46am

    Hi Julie,

    An example of the issue we have been having is when a transaction has been deleted (which has previously been declared on a VAT return), Kashflow doesn't automatically adjust the VAT return, but because the transaction has been deleted the accounts (and trial balance) are correct, yet the VAT returns submitted are incorrect. We can't process a journal to correct this on a subsequent VAT return because this would then mean the accounts are adjusted and therefore would be incorrect. Hence we have been submitting a manual VAT return (outside of Kashflow) to correct this. What is Kashflow's solution to this from April 2019 when MTD is implemented?

    Man y thanks


  • Julie Shepherd commented
    7 Nov, 2018 12:11pm

    Hi Katerina, I can't personally comment on the legislation or how other providers are implementing it,  but KashFlow users will still be able to make adjustments to the figures for corrections etc, using journals, which will ensure that all amendments are properly audited. 

  • Katerina Kurgane commented
    7 Nov, 2018 11:19am

    Dear Julie,

    Please would you point me in the right direction where MTD says that manual adjustments to VAT won't be allowed? And I do apologise in advance that I have missed this but I am really struggling to find a confirmation of this anywhere.

    On contrary, the information I have is: 'The existing error correction rules will apply where a taxable person needs to amend their VAT accounting records.' and 'Corrections to previously submitted VAT Return updates will continue to be made through the current processes (SI 1995/2568 Reg 34, 35, VAT Notice 700/45).' as per Making Tax Digital for VAT: legislation overview - GOV.UK on

    Per the current process as per VAT Notice 700/45, for errors of a net value that do not exceed £10,000, or errors of a net value between £10,000 and £50,000 that do not exceed the limit 'adjust your VAT account and include the value of that adjustment on your current VAT return'.

    VAT Notice 700/45: how to correct VAT errors and make adjustments or claims - GOV.UK:

    In addition, also per MTD legislation overview on in the electronic record-keeping requirements section it says: 'Only the total for each type of adjustment will be required to be kept digitally not details of the calculations underlying them.' which to me just confirms that there is no issue in making adjustments to VAT in the current way once MTD commences.

    Besides, as other uses have mentioned here, other software have this function. Why can't KashFlow?

    Looking forward to hearing from you soon and many thanks in advance.

    Kind regards,


  • Julie Shepherd commented
    6 Nov, 2018 04:15pm

    Entering figures directly in this way will not be allowed under the MTD VAT rules, therefore we will not be implementing this.  We are, however, making some improvements to VAT in KashFlow which should make adjustments through journals easier.

  • Guest commented
    18 Apr, 2018 11:12am

    I agree with Chris's comment.  With MTD this functionality is now crucial.  Please can this be prioritised as numerous clients will be effected.

  • Chris D commented
    17 Apr, 2018 10:21am

    Currently we are able to work around this issue by reverting to submittiing the VAT manually through the HMRC 9 -line portal, however, we will not have this luxury once MTDfB VAT has come in. As the pilot for this is now up and running, please can this functionality be included, such that manual adjustments can be made for those clients on the pilot scheme, where necessary.

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