Note that when preparing your first VAT/tax return in QuickBooks Online, it won’t include any unfiled “late” claims that were entered in your source software and may be incorrect if we’d had to use some workarounds. We recommend you carefully check the figures in any QuickBooks Online tax return that contains converted transactions and is yet to be submitted. If the figures provided by QuickBooks Online are different from those you need to file, you may need to adjust the tax return in QuickBooks Online, manually post journals or make some other necessary changes. This should only affect tax returns to be submitted that include converted transactions. Subsequent tax returns containing only transactions entered after the conversion should not require any manual adjustments. To read more about why tax returns may be different for the same period in the old and new software please click here.
File the most recent tax period you’ve already submitted. QuickBooks Online will then be able to recognise any future transactions entered that are dated back into historical tax period as “late” claims. These will then automatically be included in the next tax return.
For UK companies, make sure that MTD is not yet setup. Choose Taxes from the left column and if you see the option to setup MTD choose I don’t need MTD (you’ll be able to set it up later):
You should then be able to select the option to Prepare return.
Edit the period and dates as necessary before clicking the arrow next to the Submit button to display and select Mark as filed. You’ll then be returned to the Taxes page this time showing the filed return as unpaid. If the tax return indicates a refund is due, the return will show as paid.
For returns where tax is owed, select the option to Record payment and choose a bank account, date and the amount from the tax return.
Whether you owe or are owed tax, you now need to enter a journal entry. In the top right of your browser click the + button and under Other choose Journal Entry.
You’ll then see the Journal Entry screen. Assuming the amount filed was a payment (not a refund) then post the following journal entering the amount included on your filed tax return. Remember to use the same bank account, amount and date you used when recording the payment above.
Save the journal entry to complete the process.
Where tax is owed to you, the journal is slightly different as you won’t have entered as bank payment. Instead you’ll need to Debit Tax Control and Credit Tax Suspense:
If you are VAT registered in the UK, you can then turn on MTD by clicking Edit VAT in the top right, then Edit Settings
Select the slider to turn on MTD.