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':
- Go to the ‘Bank Transactions’ screen
- Populate the Customer/Supplier field
- Amend the category if required
- Select the correct VAT rate from the dropdown list
- Press 'Confirm' to review the transaction so it appears accurately on your VAT return
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 shown in the VAT report and ensure that the transactions correctly fall within this range.
Once everything is correct, use the 'Connect to HMRC' button to connect Business Finance Assistant to your HMRC account. You should make sure that 'MTD' (Making Tax Digital) is enabled for your HMRC account.
Please refer to this guide for more information: How do I get Business Finance Assistant set up for submitting VAT returns in compliance with Making Tax Digital?