Postponed VAT accounting

[ta2022]

Hi Guys, 

Bit of a newbie here but need some help with postponed VAT accounting. 

Since adopting the new scheme we have seen our VAT return steadily increase from around 15k a quarter up to 65k a quarter. This has me worried that something is going wrong. 

We are entering this onto the system via sage, using tax code T18 as recommended. To my understanding this enters both the input vat and then the output vat with an auto credit entry along with the sales invoice we post. 

However is output VAT not being entered twice thus increasing my VAT liability? Once via the auto credit by sage, and then again on the actual sale of goods? Or maybe it is something else we have missed. I don’t see how the change in scheme should increase the VAT we owe as our business activates have remained unchanged.

Thanks in advance for your help. 

[Author]

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