The VAT Return figures in box 1 and 4 don’t come from the nominal code, they are generated from each transaction directly, so reconciling the two isn’t straight forward or in some cases even possible. 

For example, you post an invoice to T24 for £50, your vat return will show £50 in box 1 and 4 but your sales and purchase tax nominal codes will show £0.

A few reasons why they wouldn’t match would be:

- You’ve used a reverse charge or notional vat tax code, which puts an amount in box 1 and 4 but doesn’t post anything to the nominal ledger.

- The same rule above applies when using a postponed accounting tax code.

- You have posted adjustments on your vat return

- You have unreconciled transactions before or after the vat return date

- Your VAT transfer journals for a previous vat return either weren’t posted or posted for the wrong amount.

This list isn’t all the reasons but some of the most common, other members might give you some others. 

Ian

Thank you very much for this explanation, I understand the in out as your example and none of the above have been used, however after checking through the VAT return detailed report I can see some errors there.

Thanks again, best regards

Great to hear, if you're able to share what it was, that would be useful for others in the community if someone else has the issue in the future.

Ian

Yes of course Ian,

The errors were postings with the incorrect date (year 2023 of which had been deleted/cancelled) these were being included in the Account Balance in the nominal code (as shown at top of report Account Balance) for this quarter, but not in the History Balance which are postings dated within this quarter (report from Apr to Jun). After checking the detailed vat report, the postings show as... in and out, phew problem solved. Think I was panicking before thoroughly checking the VAT Report (Detailed)  

Thanks again for your example of errors, these been noted for future reference.

Best regards

Venetia

Yes of course Ian,

The errors were postings with the incorrect date (year 2023 of which had been deleted/cancelled) these were being included in the Account Balance in the nominal code (as shown at top of report Account Balance) for this quarter, but not in the History Balance which are postings dated within this quarter (report from Apr to Jun). After checking the detailed vat report, the postings show as... in and out, phew problem solved. Think I was panicking before thoroughly checking the VAT Report (Detailed)  

Thanks again for your example of errors, these been noted for future reference.

Best regards

Venetia