During the registration process, you would have been asked whether you require VAT features for submitting your VAT return. If you selected 'No,' the VAT Rate fields will be hidden in your dashboard. To modify this setting, follow these steps:
- Navigate to 'My Profile.'
- Choose 'Company Settings.'
- Edit the VAT settings under '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':
- Go to ‘Bank Transactions’
- Select the appropriate VAT rate from the dropdown list
- Adjust the category if required
When creating invoices, input the correct VAT % in the 'VAT%' field in the invoice template.
The date range considered by the VAT return for transactions is determined by the obligation period provided by HMRC. Verify the date period displayed in the VAT report and confirm that the transactions fall within this range.
Once everything is accurate, use the 'Connect to HMRC' button to link Business Finance Assistant to your HMRC account. Ensure that 'MTD' (Making Tax Digital) is enabled for your HMRC account.