When trying to submit a VAT return, Box 3 and/or Box 5 is in error despite being calculated correctly in my spreadsheet. How do I fix this?
It is likely the problem you are facing is due to a rounding error. HMRC always round values down to the nearest penny while Excel will either round up or round down depending on the decimal value. For example:
If you have a value of 1234.567 in Excel and the cell is set to a Number and 2 decimal places, the value would be rounded up to 1234.57. Whereas, HMRC would expect the value to be rounded down to 1234.56.
To resolve this issue so you can submit your VAT return, either round down the Box 3 and/or Box 5 value in your Excel spreadsheet, or tick the Calculate check box in the Easy MTD VAT Spreadsheet Settings window so Easy MTD VAT works out the value the way HMRC expects it.