Why doesn't a negative VAT Return carry over to the following period?

Hi there, bccproperty.

When you have available credit from HMRC, this will not automatically apply to the following period. That's the reason that the negative VAT Return doesn't carry over to the next filling.

I suggest adjusting your VAT return before you submit it to HMRC. This way, you're able to enter the adjustment amount for available credit and it will carry over to the current period. Please note that any manual adjustments you make to your return will impact your VAT control. If you are not sure about making an adjustment, I recommend consulting an accountant to help you guide in making an adjustment so your account stays accurate.

Here's how to adjust:

1. Click Taxes at the left panel. Then, select VAT and select Prepare Return.
2. Click Adjust in the VAT line that you want to change.
3. Choose an Adjustment Date and VAT rate.
4. Select the Adjustment Account drop-down menu and choose an account.
5. To change the adjustment because you received credit and you owe less VAT to the government, select an income account that you create for this purpose.
6. If you are making the adjustment to include a fine, penalty, or interest on a VAT return, select an expense account, such as Interest Expense or Non-deductible Penalties.
7. In the Amount section, enter the amount of the adjustment. Then, enter a memo to describe the adjustment.
8.  Hit Save.

For additional information, you can click this article: Adjust your VAT liability.

After that, you can now submit a VAT return. Please check this article to see the detailed steps and information: Submit a VAT return in QuickBooks Online.

Please also refer these articles to see a table that contains different VAT codes and how to make any changes to your VAT settings, codes, and rates:

• Common VAT Codes.
• Set up and edit VAT settings, VAT codes, and VAT rates.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.