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How do I process a VAT return that includes a scaffold hire invoice that applied RC vat to it, but I cannot claim the VAT back as its appearing in VAT return details
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section of VAT detail report already submitted to HMRC
Box 4 VAT reclaimed on purchases
| 29/12/2021 | Bill | 4870 | Scaffolding Services Ltd | RCSGP-20.0 | 20.00% | 1,995.00 | 399.00 | 689.25 |
This is how I entered one of their previous bills onto Quickbooks
I had tried entering it as RCPCIS-20.0 and was getting same result on VAT detail report. A friend of mine who uses QB and a scaffold hire company were using the RC SG code, so I assumed that was the one I needed to use too. I will use the RCPCIS-20.0 on the current bill and see if it makes a difference to the VAT detail report.
This is for a bill already processed and VAT return already submitted to HMRC
Category: CIS GROSS (0%) Description: Cost, Amount £1995.00, VAT 20.0% RC SG
Memo
Subtotal
£1,995.00
| VAT @ 20% on 1,995.00 | 399.00 |
| VAT @ -20% on 1,995.00 | -399.00 |
Total
£1,995.00
Less CIS
Balance due
£0.00
This is their latest bill to me.
Ref: Part Rear Elevation
Description of Works:
3 no. lift scaffold on the 2 no. rear elevations of the building, fully boarded to
accommodate for access for painting & decoration, as discussed on site.
Total Balance:
£1995.00 + VAT
This invoice:
‐ £995.00 + VAT
Upon Completion of 1/2 the rear elevations.
Remaining Balance £1000.00 + VAT
955.00
Domestic Reverse Charge applies
VAT is to be paid at the prevailing rate by the supplier of the service
VAT = £191.00
Net £955.00
@gcj1971 wrote:
I had tried entering it as RCPCIS-20.0 and was getting same result on VAT detail report. A friend of mine who uses QB and a scaffold hire company were using the RC SG code, so I assumed that was the one I needed to use too. I will use the RCPCIS-20.0 on the current bill and see if it makes a difference to the VAT detail report.
If the purchase is covered by Domestic Reverse Charge for Construction Services (CIS Reverse Charge) then use 20% RC CIS code (or 5% RC CIS for reduced rate services).
20.0% RC SG should NOT be used for this - it is for purchase of "services bought from someone in another country that are classed as standard rate in the UK".
This help page gives detail on which boxes of the VAT Return are affected by the CIS RC codes.
20.0% RC SG hits box 6 & 7 together (rather than just 6 or 7) so your VAT return will be wrong.
A full list of QBO VAT Codes can be found here https://quickbooks.intuit.com/learn-support/en-uk/value-added-tax/common-vat-codes/00/239529
(in general, the detail on affected VAT Return boxes is all correct but please ignore large chunks of the description text - a lot of is garbage!)
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