The business that I do book-keeping for pays business rates, but now also is about to start paying council tax on a recently-purchased adjacent residential property. I am a little confused as to how to process these payments through Sage.
Up until now I have been posting the business rates to 'General rates' - is this correct and would it also be the same for the council tax?
I was also previously advised by our accountants that the rates should be posted as T0, but I've also read that it should possibly be T9 - what is correct?
Couldn't be clearer - both residential and business rates are 'non-vat' items. It was always drummed in to me that "you don't pay tax on tax" and rates are a tax in all but name.
What is the purpose of the residential property? This will be an internal accountancy decision either to include in General or not but someone here may have come across a similar situation.
I would use the standard rates code (ok....even if it is actually called council tax) and use code T9. If you are looking in the future to separate the costs for the two properties or simply analyse the costs for the resdidential property, I would start using a separate department number for say 'Residential'.....that way you will record transactions as normal using the standard codes but be able to analyse separately the residential costs etc etc.
I'm not worried about splitting the payments into two nominal codes at the moment - I can just identify them in the description. I just wondered if there may be a more suitable nominal code that other users put business rates and council tax in.
It looks like I should be using T9 from now on though... what do other people think - T0 or T9??
