I have a client who uses Sage Instant Accounts but I am not all that familiar with this system so could someone please let me have some advice?
The system is of course currently set up to register VAT at 15%. However, when this changes on 1 Jan 2010, and I need to change it to 17.5%, how do I go about this on Sage? I am aware that some invoices I will be inputting will be at the old 15% rate and some the new 17.5% rate so I can't make a "global" change so how do I do this for individual invoices please? I was assuming I simply change the VAT amount itself when entering each individual invoice whilst leaving the T9 code as 15% for the time being but I am concerned this may throw other figures out if I am not careful?
and a copy from their help pages, I hope they don't mind
On 1 January 2010,
the standard rate of VAT increases from 15% to 17.5%. To account for this change in Sage Accounts, you should check and amend the following: Change the rate on the standard VAT tax code, T1 by default, from 15% to 17.5%. Change the rate on any outstanding invoices, credits, sales orders and purchase orders. Amend the VAT amount on relevant bank recurring entries. Amend the VAT amount on memorised and recurring invoices, credits, sales orders and purchase orders.
If you are using Sage Line 50 v12 or below or Sage Instant Accounts v12 or below, to make the required changes manually, please refer to the following section.
To make the changes manually To change the VAT rate in Sage Accounts To change the standard rate of VAT in Sage Accounts, you should edit the standard rated tax code, T1 by default.
Note: You should make this change on 1 January 2010.
1.Open the Settings menu, choose Configuration then click the Tax Codes tab. The tax code information appears.
2.Select T1 then click Edit. Note: If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit. The Edit Tax Code window appears.
3.In the Rate box, enter 17.5 then click OK. The Edit Tax Codes window closes.
4.To apply the change and return to the Sage Accounts desktop, click Apply then click Close. Tip: If you are prompted to save your changes, click No.
You have successfully changed the standard rate of VAT. Sage Accounts applies the new rate of VAT to any new transactions that use this tax code.
All existing transactions remain unchanged at the old rate of VAT. To update the VAT values on existing invoices and orders You should recalculate the VAT on any invoices or orders that have not yet been posted to the ledgers.
Note: The steps below refer to invoices only. You should use the same process to amend any relevant sales orders, purchase orders, credit notes, quotes or proformas.
1.Open the Customers module then from the Links pane click Invoice List. The Invoicing window appears.
2.Double-click the required invoice. The invoice appears displaying the relevant items.
3.Click in the Description column of the first standard rated item then press F3 on your keyboard. Tip: For service invoices, click in the Details column then press F3. The Edit Item Line window appears.
4.From the Tax Code drop-down list, choose the standard rate tax code. Note: Although the correct tax code already appears in this box, to recalculate the VAT amount you must select the tax code again. The VAT amount recalculates using the new rate of VAT.
5.To close the Edit Item Line window, click OK.
6.Repeat steps 3 - 5 for any other standard rated items on the invoice. Note: If the invoice includes carriage charges and the associated VAT requires adjustment, click the Footer Details tab and manually amend the VAT value. If the carriage VAT value is not accessible you must select the Item VAT Amendable check box in Settings > Company Preferences > VAT tab.
7.To save your changes and return to the Invoicing window, click Save then click Close.
You have successfully updated the VAT amounts on the invoice. If required, repeat the process for any other invoices that need to be updated.
I think trick is with older 15% items is just to adjust the VAT amount when recording which just needs a bit of care. Someone else might know a better way.Andy
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Bookkeeping and payroll services in and around Swindon www.m4books.com
not sure on Instant Accounts, but usually on Sage you go into Settings and Configuration, then edit the tax code of your choice.
I always thought T9 code does not show on VAT returns, so would be a little worried that you are using this.
You can amend the VAT charged manually when inputting data on Sage.
P
You are correct, on all versions of Sage, T9 is the code for outside the scope of VAT and should only be used for that purpose as anything with a T9 code is not captured using the VAT function.
If the OP has used this for 15% the VAT return if printed from the system will not be correct.
Usually T1 is the default code for standard rate, T2 for exempt transactions, T0 for zero rated and most people use T5 for lower rate (because it's currently 5%).
