This is the method used by most Councils and allows them to reclaim VAT on all non-business purchases.
To start a claim use the option to Generate VAT126 return under the Processes drop-down. A screen appears allowing you to enter the date for the claim. If you do this and then click Show details then the following screen is displayed
This finds all invoices that have non-zero VAT dated up to and including the date requested. It checks whether the supplier has a VAT number recorded in the software and also whether there is an invoice date associated with the transaction. In this particular case, the supplier for both transactions has no valid VAT number recorded and so if you click on the red highlight this will take you to the Supplier screen where the VAT number can be amended.
Once any errors have been corrected, two buttons appear
Print draft report – this prints a screen image of the report. This should not be sent to HMRC but the facility is there for you to print it out to look at hard copy.
Save claim – this records the claim in the system and also marks all the transactions included in the claim as having been claimed. This ensures that VAT is not claimed a second time on these payments. Once this is done then a new screen appears which allows you to print a copy of the claim to be submitted to HMRC or save it to an Excel spreadsheet which can be used to generate a pdf.
Once the claim has been saved, you can also use Manage VAT Claims under the Administration menu to look at the claims and see their status. You can also delete a claim if you find that you need to amend it before submitting it to HMRC.
When the repayment is received, you record it by the special screen under the Transactions menu. Do not use the menu for recording Receipts because, if you do, the claim will not be marked as having been paid.