Hi all can anyone walk me through the entries to record in VT Hoping to have a stock in hand figure at all times - but going round in circles at the moment
Have found some other software but donāt think it will be mtd compliant
Thanks in advance for any ideas
Allison
Can you add your first name so that it appears under the signature bar on your posts? Saves everyone looking it up each time and makes sure they spell it correctly!! (you do this via Edit profile --->signatures).
Im assuming, given your other post today that you are specifically talking about doing this just for MTD compliance?
Im not sure if I am missing the point on a couple of levels
- VT software cannot keep track of stock.
- under the terms of the margin scheme you HAVE to keep a stockbook, which cannot be via VT (or indeed any/most other standard accounting software), given the format/details required by HMRC. Failure to keep such means you move out of margin and into standard VAT.
- You are not required to keep the additional SB records required for such scheme in digital form, nor are you required to keep the calculation of the marginal scheme charged in digital form (quote from HMRC)
How you will process it depends on whether or not you supply invoices to customers via your software or not (Just a thought Ive never had before - does VT produce sales invoices? If not by what method are you doing so?)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
As it's a new job for me I want to start off posting entries into VT so that I can transfer to MTD in the future.
Client keeps the Stock book.
I like this bit of your reply....nor are you required to keep the calculation of the marginal scheme charged in digital form (quote from HMRC)
Client issues his Sales invoices. VT Transactions+ version can produce sales invoices.
I have actually posted another problem .. if I can bother you with it....
Salvage Online Vehicle Auction invoice shows
Vehicle price £1550
Buyers Premium £161.50
20% vat on charges £32.30
Net total £1711.50... (this being vehicle price + Buyers premium)
VAT Total £32.30
Invoice Total £1743.80
Client is using Net total £1711.50 in Stock Book as purchase price, and then posting a Zero Cost, VAT £32.30... as an additional general expense to the P&L. Do you think that is correct.
I would like to use Vehicle Price £1550 for the Stock Book - margin calculation. Then include Buyers Premium & VAT as General Expenditure in the P&L
Hi Allison
I will keep the answer to the second part of your question to the other post to keep it tidy. http://forum.bookkeepers.network/t64880948/margin-rate-online-vehicle-auction-stock-price-query/
So just to double check - the client is NOT issuing invoices via VTT+? He is doing that via some other software?
Are you then just importing the invoices into software via an excel or csv file?
You have two choices - amend the CSV to include the margin adjustments on the uplift of data (so you would have a VAT element for the margin and the balance vat zero rated). Or uplift the data as is and do journal entries for the car margin sales.
Keep an eye out on the VAT notices and the boards on here for further infor re the margin scheme and MTD. HMRC's stance has changed in that originally they stated that margin and other such schemes would remain out of MTD, now its in except the stock book itself and Ive heard tell (not convinced just yet) that each item in the margin scheme needs a separate line of data entering (which I do for my vehicle clients) as opposed to a bulk VAT entry adjustment (which I do now for my watch/jewellery clients). That being the case the latter clients work will double/treble at least!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I ended up entering the margin VAT as a journal and then realised it didn't reduce my Net Sales on the VAT Return... So I ended up putting the Margin VAT amount in the Car Sales figure so all OK and balancing now.
Will take on board your comment re. entering each purchase/sale individually rather than the total from my excel stock book.
