Tax and VAT - Review Points

Checkmybooks looks for issues with balances and transactions from a tax and VAT point of view and produces 4 types of Review Point.

Potentially disallowable items based on account names

Looking for account names that indicate the transactions they contain may be disallowable for tax purposes.

Example
A profit and loss account called "UK Entertaining".

Check Details
Looks for account names that contain specified text values [that you can change] such as "entertaining, fine, penalty, surcharge".

Typical Description
"The balance on account UK Entertainment is potentially disallowable".

Potentially disallowable items based on transaction descriptions

Looking for transactions with text in the description that indicates the transactions may be disallowable for tax purposes.

Example
A transaction posted to Travelling Expenses where the description reads "Entertaining Fred Bloggs at the races".

Check Details
Looks for transaction descriptions that contain specified text values [that you can change] such as "entertaining, fine, penalty, surcharge".

Typical Description
"There is 1 transaction in Travelling Expenses that is potentially disallowable".

VAT potentially reclaimed in error

Looking for transactions with text in the account name or transaction description that indicates the VAT might not be reclaimable.

Example
A transaction posted to Sundry Expenses where the description reads "Entertaining clients for lunch".

Check Details
Looks for transactions with a VAT amount where the account name or transaction description contains specified text values [that you can change] such as "entertaining, fine, penalty, surcharge".

Typical Description
"There are 5 transactions in Travelling Expenses where VAT has potentially been reclaimed in error".

VAT potentially not charged in error

Looking for sales transactions where VAT has not been charged when it should have been.

Example
A sales invoice where the VAT amount is nil when the business is VAT registered.

Check Details
Looks for transactions in accounts of type sales with line items where the VAT amount is less than or equal to 0.00.

Typical Description
"There are 19 transactions in Retail Sales where VAT has not been charged".

Review Point categories