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Hi,
Can anyone advise me: I have trawled through our bank statements and found all references to 'Expenses' and now I need to enter them on Sage.
Do I just do them as a payment out of our bank account (1200) and which tax code - the previous bookkeeper had done a few before retiring and all 'expenses' are under T9.
regards
Jo'Anne
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- Fellow PM.Dip
- Practice Licence
- 336 posts
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Hi
Are you VAT registered?
If not then in principle it doesn't really matter because the codes are there to segregate items for a VAT return. However to be correct T2 is usually used for VAT exempt purchases (such as stamps) which HMRC have made exempt from VAT.
T0 should be used for purchases which are zero-rated, ie purchases which are not VAT-able - eg food items which do not attract VAT.
T9 is used for expenses which are not purchases, such as wages, which never attract VAT.
And T1 is used for everything that attracts VAT.
Somebody please correct me if I am wrong but this is how I have always interpreted the codes.
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Debsiesaid:
“Hi
Are you VAT registered?
If not then in principle it doesn't really matter because the codes are there to segregate items for a VAT return. However to be correct T2 is usually used for VAT exempt purchases (such as stamps) which HMRC have made exempt from VAT.
T0 should be used for purchases which are zero-rated, ie purchases which are not VAT-able - eg food items which do not attract VAT.
T9 is used for expenses which are not purchases, such as wages, which never attract VAT.
And T1 is used for everything that attracts VAT.
Somebody please correct me if I am wrong but this is how I have always interpreted the codes.”
Hi
Yes our company is VAT registered.
My only other problem is that I only have the bank statements to go by which do not enlighten me as to what the expenses were except for road tax, and fuel for our van.... to date I have been entering everything as T9...?!?
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- Fellow PM.Dip
- Practice Licence
- 336 posts
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Hi Jo'Anne
Things like road fund license are tax exempt - they are a tax which we pay to the government so they don't put tax on them.
Fuel would be VATable - you would put them in as T1 and then calculate the net, however without receipts you cannot claim the VAT. You would have to enter the expenses from a VAT receipt rather than from the bank statement, otherwise put them through as T0.
There is not a simple rule that applies to everything and if you are hoping for Sage to prepare your VAT return for you it is important that everything is entered correctly.
If you used to have a bookkeeper who has now retired, why don't you ask someone locally to give you some help - either short-term or long-term. There are lots of newly qualified bookkeepers on this forum who would love to have the opportunity of getting some experience.
Where in the country are you?
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Thank you Debbie,
This is quite helpful. There are recipts somewhere......!
Is it possible to edit and change the fuel entries to T0 - at present there are not that many already entered via bank as a payment.
I am in Hithin, North Hertfordshire.
Jo'Anne
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1664regsaid:
“Thank you Debbie,
This is quite helpful. There are recipts somewhere......!
Is it possible to edit and change the fuel entries to T0 - at present there are not that many already entered via bank as a payment.
I am in Hithin, North Hertfordshire.
Jo'Anne”
Oh and at present we do not use Sage to generate the VAT return - just get necessary figures. The previous bookkeeper had a dislike of computers and only under pressure used it to generate SI and recorded sipplier invoices etc making some (though not all) bank payments - nothing in VAT Liabililty, PAYE NIC etc... so as a consequence the bank account on sage is in a much healthier state than the real bank balance.
Jo'Anne
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- Fellow PM.Dip
- Practice Licence
- 336 posts
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Hi Jo'Anne
To change any entry in Sageyou need to use the maintenance/correction facility.
I don't have a copy of Sage in front of me but in the top left hand corner (menu?) there is a drop down with correction or maintenance listed. If you click on this it will tell you you have to close all open screens. If you are unsure of what you are doing take a backup at this stage. Then select corrections and find the original entries and open (edit) them one at a time and this will enable you to change the tax code used. From recollection, once in the edit screen you might have to select a further 'edit' option to get to the tax codes. Anyway once you are in there you can change T9 to T0.
Sorry i can't be more specific but I don't use Sage at home, only at my clients' premises.
Sadly I live in Yorkshire so I can't offer any local help to you.
Kind regards
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Just one other thing while I remember:
employees mileage expenses is that T9?
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Hi Debbie,
Thank you very much for your help - I have located all receipts (they're a bit messy but at least they are here)
I have managed to go into maintenance do a back-up and correct the T9's to their correct T1 and T2's
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- Fellow PM.Dip
- Practice Licence
- 336 posts
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I'm not sure about employee mileage expenses as I haven't come across them before. Can anyone else advise on this one please?
Glad you were able to follow my instructions!
Kind regards
Debbie
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- Member PM.Dip
- Practice Licence
- 97 posts
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Debsiesaid:
“I'm not sure about employee mileage expenses as I haven't come across them before. Can anyone else advise on this one please?
Glad you were able to follow my instructions!
Kind regards
Debbie
”
Employee mileage expenses would be T9.
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