They use Sage, which is in a bit of a mess. I can sort that, however, he moved from standard to cash accounting after he had completed the vat return for the quarter ended 30th April. He did contact the helpline to go through the change.
He is now using T10 and T11, instead of T0 and T1 respectively, however, he is using T9 for payments received in respect of April and prior invoices. However, the payments wont allocate as there is obviously a mismatch.
Should T0 and T1 be unticked so that it doesnt show on the vat return? Additionally, he is using the flat rate scheme
I have just tried this on the demo data, and I think it will work. If I enter an invoice on T1, reconcile and enter the journal, I can then place the company on cash accounting. However, as soon as I enter a receipt, the invoice is picked up again on the vat return. However, if I exclude T1 from thae vat return it wont.
There are three different ways of calculating turnover for flat rate schemes. The cash based turnover method is based on when payment is received, so is very similar to cash accounting.
Fiona
-- Edited by Fiona on Tuesday 9th of July 2013 02:37:56 PM
We covered this at our ICB meeting in Exeter last night. I can't help with the Sage, I'm afraid, the advice from others was to watch carefully what it was doing! However, what raised questions for me was the schemes:
"The Flat Rate Scheme and other VAT schemes
Cash Accounting Scheme
You can't use the Flat Rate Scheme with the Cash Accounting Scheme. Instead, the Flat Rate Scheme has its own cash based method for calculating the turnover."
Just had a quick look, are the mechanics basically the same anyway, ie the liability arises when payment is received, and the percentage is applied to that?
That is what he is looking for, he has quite a few old debtors so he paying the vat in some cases before receiving the actual payment from his customer.
Just need to suss the Sage part out now, I think I am on the right lines though.
