Source exceptions

A source exception is an item in your accounting data that Onzli cannot place in a VAT box with certainty. It appears in the validation list as an unresolved source exception and blocks the return.

Classify it

Where you are allowed to resolve exceptions, choose Record a decision next to the item.

1. Choose what the item is from the classifications below.
2. Write a reason in plain English. A minimum length applies.
3. Enter your authenticator code and record the decision.

The classifications

These resolve the exception because the item is correctly outside every box:

• Listed in Notice 700/12 as left out (money put in or taken out, loans, dividends, gifts of money, insurance claims, wages, PAYE, MOT, vehicle licence duty, rates).
• A purchase-side payment that is not consideration for a supply.
• A payment, clearing or balance-sheet movement: not a sale or purchase.

These are recorded, but the return stays blocked:

• A grant, donation or compensation received (needs review).
• Zero-rated, exempt or reduced rate: the item belongs in the return.
• Outside UK VAT under place-of-supply rules.
• Reverse charge: international services, gold, or the domestic reverse charge (Notice 735 categories).
• A bookkeeping or mapping error: correct it at source.

What a classification does

• It never changes a figure or your accounting records.
• Only an item that is correctly outside every box resolves the exception and unblocks the return.
• An item that belongs in the return, or is a bookkeeping error, is recorded but keeps the return blocked. Correct the source in your accounting data, then recalculate the period.
• The decision and reason are kept in the audit trail.
• Under dual control, the person who classified the exception cannot then approve the same return.

Next

After the item is resolved or corrected, recalculate the period. See Resolving validation errors.