Reclaim VAT annually

[Neil2412]

I’m the financial officer for my local Parish Council (PC).

The rules around VAT are (I think: I’m neither an accountant nor a book-keeper) unusual. The PC doesn’t charge VAT, but pays it and can reclaim any paid at the end of the financial year.

Currently in Quickfile I handle this by setting up a bespoke account (VAT Paid) then apportioning VAT to it manually when processing a VATable purchase.

It works OK. I just wanted to check in and see if I’m re-inventing some functionality that already exists within Quickfile.

Thanks

N

[QFSteve]

Hello @Neil2412

What vat scheme are you on?

[Neil2412]

How Parish Councils Reclaim VAT

1. Section 33 of the VAT Act 1994: This special provision allows local authorities, including Parish Councils, to recover VAT on costs for their non-business activities, which are statutory duties performed for the public good, like maintaining parks or war memorials.

2. VAT Form 126: Councils not registered for VAT use this specific form to claim refunds for VAT paid on these non-business expenses.

[QFSteve]

Hello @Neil2412

I if its working for you I would stick with what you are doing.

The support team are not registered accountants so it may be worth checking.

I will leave this thread open for now as there are some accountants on here who may comment.