Hi, I have a client who has property income. I am using VT. When I set them up on VT I just used 'sole trader' as the accounts lay-out. Now when I try to print a profit & loss ('tax return format') I get the message some accounts with a balance are not assigned to a tax return box.
What chart of accounts layout should I be using for this? should I be using 'self-employed' template and just changing the name of the accounts rather than adding in new ones?
If you change the names in any CoA VT will not recognise the name.
It is relatively simple to add the new account names to the tax return set up.
When you get the message, you are given the option to add them to the Tax Return format. If you select OK you are presented with an analyser box > select your custom account in the left hand pane, to highlight it, then select the nearest account in the right hand pane to assign your account to the P&L.
It will then be linked to the ledger type you selected permanently, so for example if you had an account Rental Income Newlyn, I would assign it to Sales/ turnover, if you have an account called Agents Fees, I would assign it to the cost of sale section (possibly the professional fees section depending on what you think is more appropriate). The Tax Return format is set up to mirror the boxes on an a SA return, and can be imported into a tax package, so it has a fixed format
The Tax Return P&L is the same format whichever set up you choose, and even changing the name of an existing account will generate the message.
