How To: Select the items to include on a VAT Return

Table Of Contents

Uncommitted Transactions from Previous Periods

Introduction

Processing a VAT Return is an advanced accounting function and should only be completed once you have reviewed all transactions for the reporting period.

Important: Once a VAT Return has been committed, it cannot be amended. Ensure all transactions and totals have been checked thoroughly before proceeding.

This article explains how to:

Select the transactions to be included in a VAT Return.
Review and validate the VAT data.
Understand the available VAT submission methods.

Selecting Transactions for the VAT Return

Steps

Open the Accounts screen (show me how).
Open the Tax (VAT) | Tax Register_Tax_Register_Tab) tab.
Select the Monthly option.
Choose the reporting period from the drop-down list.
Example: To process a VAT Return covering April, May and June 2015, select June 2015, which represents the end of the reporting period.
Click Go.
Review any prompts that appear:
Uncommitted Transactions from Previous Periods
If new or previously excluded transactions exist before the selected period, you will see the following message:
"Do you wish to include uncommitted transactions from previous periods?"
Click Yes to include these transactions in the current return.
Older Uncommitted Transactions
If uncommitted transactions exist from three months ago or earlier, the following message will appear:
"There are uncommitted transactions from 3 months ago or more, do you wish to include these as well?"
Click Yes if they should be included in this return.
Review the transactions displayed in the Tax Register.
Verify that the transaction totals match your expectations.
If any transactions should not be included in the current return, see:
- How To: Exclude Items from a VAT Return
If you need to review or reinstate previously excluded transactions, see:

How To: Review Items Excluded from a VAT Return

Once you are satisfied that the transactions are correct, you can proceed with processing the VAT Return.

Additional Information

VAT Reporting Periods

The VAT quarter settings used by Khaos Control can be configured in:

System Values | General - Defaults and Financial | Financial Setup

Advanced VAT Processing

If you need greater flexibility when selecting transactions for a VAT Return, use the:

Advanced Processing Method

This provides additional controls over which transactions are included in the submission.

VAT Submission Methods

The method used to submit a VAT Return is controlled by the HMRC Tax Submission setting within System Values.

For more information, see:

HMRC Tax Submission

The following options are available:

Not Decided

This is the default setting.

When selected:

Both manual and digital submission options are disabled.
An error message will direct you back to System Values so that a submission method can be selected.

Manually

When Manually is selected:

Digital VAT submission options are disabled.
VAT Returns can be prepared and committed manually.
Submission to HMRC must then be completed outside of Khaos Control.

Digitally

When Digitally is selected:

Manual commit options are disabled.
The return can still be viewed and reviewed within Khaos Control.
VAT submissions are sent electronically through HMRC's Making Tax Digital service.

For guidance, see:

Note: If Khaos Control detects that previous VAT Returns have been submitted digitally, the system will automatically default to Digitally. If you attempt to change this setting, a warning message will advise that previous submissions have used the digital process.

Best Practice Before Submission

Before committing a VAT Return:

Review all transaction totals.
Verify any exclusions.
Check for uncommitted transactions from earlier periods.
Ensure the correct reporting period has been selected.
Confirm that the chosen submission method matches your HMRC requirements.

Important: Once committed, a VAT Return cannot be amended.