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Community > Small Business >

Late entries in VAT return

Started by Gyles Smith -   in Small Business

Hi. I am new to Xero and would like to file my first VAT return directly using the function in Xero. However, I have several receipts which were missed off my last VAT return (not done through Xero) and so I would like to include them in my next VAT return. Is there any way of doing this please? I have already entered all these bills into Xero but because they are from the previous VAT period and I have not previously submitted a return through Xero, they are not showing as late additions.

Many thanks
Hi
When you run the VAT return report in Xero there is a tick box for "Include late VAT claims". It is just below the VAT quarter selection. This should bring in any VATable transactions that are dated prior to the VAT quarter and were not included in a previously published VAT quarter.
If these receipts are missing what tax rate was used when they were entered into Xero?
 

John Knight  

Thank you very much for your reply, but will this still work even if I haven't submitted a VAT return through Xero before? I can see that it would work if I had previously submitted one, but I can't see how it would if this is the first one I have submitted. Do you know if there is any way of manually selecting all the late bills that I would like to include?
 

Gyles Smith  

I am having the same issue. This is my first VAT return in Xero and I have identified an invoice from a previous tax return period that was missed off. For accounting purposes it has been posted and paid via our old system so do not want to add it into Xero however I do want to show it on this quarter's tax return which I am currently doing. Any help on this would be gratefully received.
 

Pamela Austen  

Hi I have a slightly different question, am submitting my first VAT return in xero but when reconciling there are a few entries that I cant locate the receipts for. In the past I've past everything onto our accountant and they've submitted it but can I still 'ok' a reconciliation without a receipt or should I leave it unreconciled? Thanks in advance
 

Matthew Sturt  

Hi
Not sure I understand the question. What are you thinking of leaving unreconciled - a few bank transactions or the VAT return itself?
 

John Knight  

Sorry I didn't explain myself very well.... I'm just trying to reconcile my bank statements at the moment - with the intention of then doing a VAT return.... I've imported the statement, scanned in all of the receipts I have but noticed that a few are missing. Do I still reconcile these even though there is no hard evidence in the form of a receipt? I'm just (probably being too over cautious) trying to cover our back in case the tax man questions anything and needs to see receipts.

I've probably still not explained myself well enough.... main question is when I've imported the bank statement, can I 'ok' transactions even if I don't have a receipt for it?

Thanks
 

Matthew Sturt  

Reconciling bank statement lines is fine but what you are not supposed to do is reclaim VAT when you do not have a valid VAT invoice or receipt to support it.
 

John Knight  

Ok that makes sense, thanks John
 

Matthew Sturt  

Matthew, I've just come across your post, just to clarify - it is acceptable to include items within your vat return even without a valid receipt - so long as you can provide certain evidence HMRC have a statement of practice on this which provides further guidance.
 

Debbie Lynch