Iv just prepared my first VAT return on sage and im not sure that i have done it correctly.
My box 6 figure was not totaling my Sales figure so i printed off the detailed vat report and looking through it had picked up figures journal credits that i had posted to capital introduced - i have then gone into correct the vat code to T9 on the half of the journal that was being posted to the capital account. Now my box 6 figure is totaling my sales (relief).
Again, on my box 7 figure it has picked up journals into drawing (code 3300) do i need to do the same with this?
Does anyone have a step to step that i can following at my quarter end to ensure i have done all the reconciling i need to do as im feeling a little worried that i may do this wrong.
Yes, drawings should be posted to code T9, also things like wages, Vat payments to HMRC etc. T9 is for anything that should not be included on the VAT return. Hope helps
Ok SD, I don't know for sure but I'll have a stab for fun. Plenty of gurus to put me straight if I'm wrong.
Assuming business owner is a sole trader, bought something for use in his business, takes no cash out, just adds to capital introduced.
Owner bought the goods and paid VAT but they aren't VAT reg'd so can't claim VAT back and can't invoice on with VAT added. So from business's perspective, transaction is non-VATable. Journal should just be Dr Stationery gross amount and cr capital, both code T9.
Re VAT return checklist, this one is from the Sage 50 Accounts Stage 2 workbook I have: - ensure VAT settings and preferences set up - post VAT Scale Charges if applicable (co car private fuel use) - use verify system to check for VAT anomalies - calc VAT return in Sage - calc EC Sales List if applicable - calc Reverse Charge Sales List is applicable - check VAT return - manually adjust as required - print VAT return reports - back up data - reconcile and archive VAT transactions - clear VAT control accs - submit VAT return to HMRC - view HMRC receipts if applicable - pay HMRC if applicable
Lots of detailed instructions over many pages in the workbook that are copyrighted so I can't provide I'm afraid. I would hope, however, you can access this same info by registering online with Ask Sage, using your registered Sage software to gain access.
Sorry I got confused if company was VAT registered or not so a brief outline on Sage VAT. T9 does not enter the VAT return at all therefore used for Wages, Drawings, Dividends VAT payments & Receipts, PAYE payments etc. T1 = VAT at standard rate T2 = Exempt VAT items - ie postage stamps, insurance, some books T3 = used for "old" rate VAT (this will be used in January 2011 when VAT changes) T5 = Lower Rate (usually set as 5%) gas/electric etc. T0 = Zero rated VAT T4, T7 & T8 = all refer to EC
A full listing can be found in Tools/configurations/tax codes.
Once you have printed & reconciled dont forget the VAT wizard (modules/wizards in older versions) as this will transfer to the VAT liability account.
Hope helps
__________________
Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
Fire away guys......
