Hope someone can help - I have just taken over as bookkeeper for a charity who provide counselling, mediation and counselling courses - some of which are government funded. I have had to set up sage and am very new to it. Most of the courses and programmes do not have VAT charged and I have been putting them on as T2 codes - when I came to do the VAT return the box 6 and 7 figures were very much higher than they have ever been in previous returns so I recoded the courses to T9 and the returns now look more in line with how they usually do.
I am confident that the non charging of VAT is correct but would like to ensure that keeping them off the VAT return altogether (T9)is the correct thing to do.
Can anyone advise - if they are found to be incorrect and should have been included at T2 or T0 - are we in big trouble and what is the best thing to do to amend the situation ???
I have done any work on VAT or Sage for a while but I used T9 for everything that had nothing to do with vat (i.e. payroll)
Are the courses zero rated or exempt?
I would have thought the items were to be shown as net sales on the return. Find out if they are exempt or zero rated. Only items outside the scope of VAT should be T9.
If you haven't finished a full year yet, you could include the missed net sales on the next return, so that over the year, the net sales on the return stack up the sales in the accounts? Or you could amend the return in writing with an explanation
