During registration, you would have been asked if you need VAT features for submitting your VAT return. If you answered 'No', the VAT Rate fields will be hidden in your dashboard. To edit this setting:
- Go to 'My Profile'
- Select 'Company Settings'
- Edit the VAT settings in 'Finance Settings'
If you answered 'Yes', you should notice VAT Rate fields in Bank Transactions, Expenses, and Invoices. These fields are used for allocating VAT to your transactions.
To set VAT rates within 'Bank Transactions':
- Access your âBank Transactionsâ in the main menu
- Select the transaction and apply the correct VAT rate from the dropdown list
- Amend the category and supplier/customer information
- Press the 'Confirm' button
- The transaction line will be shaded in light green when it's confirmed
To set the correct VAT % when creating invoices, enter it into the 'VAT%' field in the invoice template.
The date range for which the VAT return looks for transactions is determined by the obligation period returned by HMRC. Check the date period in the VAT report and ensure that the transactions fall within this date range.
Once everything is correct, connect Business Finance Assistant to your HMRC account using the' Connect to HMRC' button. You should ensure that 'MTD' (Making Tax Digital) is enabled for your HMRC account.