The latest in our series to provide you with helpful hints and tips on how to use Sage 50 Accounting software more effectively
This month we look at dealing with a VAT return.
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
- 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
- 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”
- 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
For more information
For more information on our Tax Structuring Service, please contact either:
Scott Harrower or Lulu Emms, or call us on: