VAT reclaim using VAT126 method

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 the case of the first invoice this is satisfactory, but in the second case neither piece of data has been entered and warnings are shown in red. You can click on the relevant highlighted text and correct the missing data. For example, if you click on the red field in the second column you get access the the Supplier details which you can amend and add the VAT number.

Once any errors have been corrected, three buttons appear

Export to Excel – this exports the details of the VAT claim to an Excel spreadsheet. This can be printed out and included with the claim when it is sent to HMRC. The spreadsheet can easily be edited to generate a document fully acceptable to HMRC

Print report – this prints a screen image of the report.

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 the claim has been saved, you can 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.