Sage Hints and Tips – VAT return management

Scale charges

Enter fuel scale charge details for each vehicle (or calculate and enter total for all vehicles)

Then post the scale charge journal to record this self supply

Tip: not all variants of Sage 50 have this feature, an alternative is to create and save a journal template and amend the values each year

Tip: private fuel is the most common self supply. A similar entry can be made for others but charged to a different nominal code in the profit and loss

VAT return

1. Prepare VAT return

Back-up (not essential but good practice)

Date range (enter period of return)

VAT verification

This is a series of logic checks for potential errors or queries

Tip: these can take some time to run, deselect when running interim reports for control purposes, turn back on when running final return

Calculate VAT return

Tip: always include transactions dated prior to this period that have not been reconciled. These are late booked entries posted after the previous return was completed

2. Reconcile VAT return

Consider results of verification and action as appropriate

Make adjustments:

– Manual adjustments can be entered for each box

– Note: the tax value of these adjustments will be posted to a separate control account and will require a journal to clear

Tip: the VAT transfer journal (see below) will be dated the last day of the return period, however manual adjustments are posted using the current system date, the system date can be changed in settings to the period end date

Print VAT return report and supporting schedules

Consider the results

Tip: is box 1 output tax 20% of box 6 net sales, is box 4 input tax less than 20% of box 7 net purchases

Tip: are there entries in box 8 or 9, if so EC sales lists may be required

Once satisfied the return is complete and correct, select “reconcile VAT return”

3. Complete VAT return

VAT transfer

– System will post VAT journal

Submit to HMRC

– If you have entered your access codes in settings you can submit your return directly to HMRC

Record payment

– This is a short cut to enter payment if they’re being made at the same time

EC Sales

The EC sales list reports the value of supplies made to other VAT registered businesses within the EC

Tip: Only includes transactions with tax codes T4 or T22 and where the customer record has a valid VAT registration number and EC country code

Reverse Charge

Create reverse charge sales list

Tip: This relates to a specific set of rules for businesses trading in mobile phones or computer chip