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BalansixVAT

Why has Cash VAT not been released?

Cash VAT follows the qualifying allocation. Check the receipt or payment has been matched to the correct invoice or brought-forward item.

VAT
Short answerWhat to checkWhat should happenIf the VAT still does not moveHow Cash VAT timing worksFAQs

Short answer

In the Balansix Cash VAT workflow, invoice VAT is released when the related receipt or payment is allocated. An unallocated bank movement should not release the invoice VAT.

What to check

  1. Confirm the client is using Cash VAT.
  2. Open the receipt or payment and check its allocation.
  3. Match it to the correct invoice or opening subledger item.
  4. Confirm the allocated amount where the settlement is partial.
  5. Review the VAT return source lines again.

What should happen

VAT should be released in line with the amount actually allocated and should appear in the appropriate open VAT return.

If the VAT still does not move

Check that the invoice itself carries the expected VAT treatment and that the payment or receipt is not merely coded on account. If the allocation is correct but the VAT result remains wrong, contact support with the transaction and VAT period.

How Cash VAT timing works

Under HMRC's VAT Cash Accounting Scheme, output VAT is due when the customer pays and input VAT is recoverable when the business pays the supplier, not when the invoice is issued or received.

Balansix follows that rule by releasing invoice VAT only when a receipt or payment is allocated to the invoice. A bank line coded 'on account' or left unallocated has not settled a specific invoice, so it cannot release that invoice's VAT. Part payments release VAT in proportion to the amount allocated.

Frequently asked questions

Does a part payment release part of the VAT?

Yes. VAT is released in line with the amount actually allocated to the invoice, so a partial settlement releases the matching share of the VAT.

Why did the VAT appear in a later return than expected?

Under cash accounting the VAT follows the payment date. If the invoice was paid in a later period, the VAT belongs in that later return.

What about invoices that were open when the client joined Balansix?

Bring them in as opening customer or supplier items and allocate later receipts and payments to them. That allocation is what releases their VAT.

Need help with your Balansix workflow?

Search the Help Centre first. If the issue remains, contact Balansix Support with the client, module, period, what you expected and what happened.