Welcome to our third weekly tip on preparing for Year End! This week it's everyone's favourite...
🪄 VAT - Ensure the closing position is correct
Your VAT recoverable amount at Year End should match the amount to be reclaimed/paid. This is particularly important for those working in I&E as Scribe will automatically create a VAT adjustment equal to the closing position.
However, you don’t need to wait until Year End to check that your current VAT position is correct.
✅ Check:
Go to VAT → VAT Summary. Using the 'Filter' button, apply an end date of 31/03/2025 and View Report. Make a note of this figure.
For non-VAT registered Councils, run your VAT Form 126 and use the 'Filter' button to apply a custom date range for the remaining period to reclaim.
For VAT registered Councils, run your VAT 100 report for Q4.
If your balance carried forward figure on the VAT Summary Report does not match the amount of VAT due to be reclaimed/paid to date, there are a few checks you should run through.
Verify the starting figure: Confirm that the opening figure on the VAT Summary report matches the first VAT receipt or payment in 24/25 (this will relate to prior year VAT).
Review VAT refunds (or payments): Check your VAT receipts (and/or payments) to HMRC and ensure they have been allocated to the VAT type 'R:Refund'.
Check prior submissions: Re-run that VAT Form 126 or VAT 100 report and apply the date range of prior submissions to ensure Scribe matches what was previously submitted.
Compare the VAT Form 126 to the submitted claim: If Scribe is showing a different amount to the claim submitted, for the same date range, compare both reports to see what has changed (i.e. has a VAT rate against a payment been amended since the reclaim?)
If you need any advice on how to correct a difference, contact us at [email protected]