This article explains how to make a correction in FreeAgent that falls into a VAT locked period if you've already filed your VAT return. The correction, or deleted item, will then show on your current, open VAT return.
HMRC only allows errors to be corrected through VAT returns that are within four years of the transaction date. If the transaction you edit is dated more than four years before the beginning of your current open VAT return, FreeAgent won’t make any changes. For any older errors you would need to complete and file a separate HMRC form, form 652.
How to add a transaction that doesn’t affect VAT
If you have filed VAT returns and you need to add bank transactions, bills or expenses, but you don’t want FreeAgent to automatically make the changes on your next unlocked VAT return, select 'Out of Scope' from the 'VAT' rate drop-down menu.
FreeAgent will then make those changes on your next unlocked VAT return.
Editing transactions in a previous VAT registration period
Once the final VAT return of a VAT registration period has been filed, or marked as filed, the VAT registration period is locked and changes can’t be made to any of the VAT returns that fall within that period.
Instead, the VAT effects of the changes will be posted instead to account ‘817 VAT’. You can view the correction on your VAT ‘Statement of Account’ by navigating to the ‘Taxes’ tab at the top of the screen and selecting ‘VAT’ from the drop-down menu.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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