Which box of VAT return do previous error adjustments go in?
SarahJS
Registered Posts: 273 Dedicated contributor 🦉
Hi,
I've got ITX tomorrow, and though I was all sorted, but I've just realised when doing a practice question I'm not really sure when adjustments would go in which box on the return, as my textbook says errors can go in box 1 or 4.
Is there rules on that over/underpayments are put in a specific box? ie should a previous overpayment reduce box 1 or increase box 4, and should a previous underpayment increase box 1 or decrease box 4?
Hopefully I can get this sorted as it's one of the only 'mathsy' questions they can ask so it will come up!
Thanks in advance
I've got ITX tomorrow, and though I was all sorted, but I've just realised when doing a practice question I'm not really sure when adjustments would go in which box on the return, as my textbook says errors can go in box 1 or 4.
Is there rules on that over/underpayments are put in a specific box? ie should a previous overpayment reduce box 1 or increase box 4, and should a previous underpayment increase box 1 or decrease box 4?
Hopefully I can get this sorted as it's one of the only 'mathsy' questions they can ask so it will come up!
Thanks in advance
0
Comments
-
If the over/underpayment related to output VAT (VAT on sales) adjust box 1.
If the over/underpayment related to input VAT (VAT on purchases) adjust box 4.
Eg. if the sales VAT paid last time was too high, that would have resulted in an overpayment of VAT, so you would decrease box 1. If the purchase VAT was too low, that would also have caused an overpayment, so you would increase box 4 this time.
Good luck!!0 -
Hi SarahJS,
I recently sat this exam (Passed) and we were told which box to make the adjustment in.
Don't forget to read the notes given in the exam (if you are not sure about something) as they are very useful in ensuring you come to the right answer.
I hope this is of help.
Dave13.0 -
Thanks to you both, it's awful going into an exam not being sure about something
I sat the exam this morning and passed! 3 exams to go!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 322 NEW! Qualifications 2022
- 159 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 93 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership