Once the figure due to be paid has been ascertained from the VAT Analysis Report, any payment
due to HMRC should be posted using a Cash Book Sundry Payment to the VAT Control nominal.
As per a standard VAT Liability equation, the system will deduct Input VAT from Output VAT to give a Nett VAT figure. This will be the figure owed to HMRC for the quarter. This can be found by running a Quarterly VAT Analysis Report.
Journals to move balances from the VAT Input, Output or Special Scheme nominal codes are not
recommended as these journals will be included in the VAT Analysis Report for the period in which
the journals were posted which will make historic VAT reporting problematic.