Sales Tax opening balance

UbergeeksovUbergeeksov Member Posts: 10

Hi,

Are you able to explain how I set the starting balance for Sales Tax (in my case VAT)?

I started using Wave from 1.1.19. My VAT quarter started on 1.1.19.

As at 1.1.19 I owed HMRC £X.XX in VAT (from the VAT quarter 1.10.18 to 31.12.18).

In mid-February I made a payment to HMRC of £X.XX.

When I produce a Sales Tax report (for 1.1.19 to 31.3.19) it tells me that the starting balance is £0.00, that the net tax owing is £Y.YY, that I have made payments of £X.XX, and the amount owing is £Y.YY - £X.XX. This final figure is wrong, because the starting balance is wrong.

How do I adjust the starting balance to £X.XX (liability)?

Thanks.

Comments

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    @Ubergeeksov

    It sounds like you may not have set up your opening balances correctly when you transferred onto Wave BUT your opening balance on the VAT liability account should be the same as the amount you paid to HMRC in February as that was the VAT that was due on the quarter ended 31 December 2018.

    You need to amend your opening balance entries by crediting the VAT liability account and debiting your capital account.

    Hope this helps

  • UbergeeksovUbergeeksov Member Posts: 10

    Hi,

    Thanks for your response, but how do I do that in Wave? There appears to be no way of setting a starting balance for my VAT liability account.

    Regards,

    Richard

  • MerlinAccounts_UKMerlinAccounts_UK Member Posts: 173 ✭✭✭

    Have you tried doing this by journal entry?

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