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For information of users:
This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
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Sage Accounting Software
Sage is set up with the default standard rate VAT code of T1. This T1 code is applied as default to all customers, suppliers, bank transactions and products therefore it would be best practice to continue to use this code. You therefore need to amend the T1 tax code to be 17.5% as opposed to 15% as from 1st January 2010.
This is achieved as follows:
Settings >>
Configuration >>
Tax codes tab >>
Edit T1 to be 15% and click ok >>
Apply
There is no need save the configuration on exiting, the changes have already been applied.
From this point all transactions posted using a T1 code will have 17.5% VAT applied.
You will need to be vigilant in checking the VAT amount posted as late purchase invoices will be received detailing 15% and there will be a requirement to overtype the VAT amount on posting.
Should you operate cash accounting for VAT you will need to be particularly vigilant in matching customer receipts and purchase payments to invoices to ensure the correct VAT rate is applied.
Should you have any further queries regarding Sage or any other accounting software please contact a member of the Afford Bond team who will be delighted to help.
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