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VAT Return confusion

  • 58 posts
  • # 91075

Hi

Can anyone help?

Sage seems to have pulled all the figures paid out of the bank account and filled in Box 7 with everything - what can I do to get it to only reflect our actual purchases? usually about £4,000 a month

Today for three months it is saying in Box 7 £87......!!!!!!!!!!

Please help :( 
Kempie666
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  • 56 posts
  • # 91076

Hi - without seeing the data, it sounds as though you have used the wrong tax code during the original process.

Try manually reconciling the details, and then using the adjustment process on the Sage VAT process to override the figures; or review the purchases in the Corrections screen to check that they have the correct VAT coding.

I've not encountered this myself, so the above is just a suposition

Good luck

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  • 58 posts
  • # 91077

Hi ,

Thanks - have found lots of HMRC VAT payments which are T2 should they be T0? 

Jo'Anne 
  • 794 posts
  • # 91079

Hi Jo'Anne,

Payments made to HMRC for Vat Returns should be T9 against nominal code for Vat Liability 2202.

Marilyn   


  

  • A clever person solves a problem.

    A wise person avoids it.

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  • 58 posts
  • # 91083

Thank you 

I have done that now (T9) thank you - I am now down fromn £87K to £17K
just one other thing when I pay a utility on account that's still ok to do as T1 isn't ?

Jo'Anne
  • 794 posts
  • # 91084

Hi Jo'Anne,

I'm not sure what you mean by pay on account - if you are processing as a direct payment out of bank you would use the relevant tax code To, T1, T2 or T5. 
Some utility items are zero-rated (water bills which may also include vatable items sometimes), electricity/gas would normally be 20% vat but can be 5% in some instances. Things like business rates, bank charges and wages, PAYE & NI are T9 as they are not required to be on vat return.

If you are processing a bank payment through supplier account then tax code does not apply as the invoice entered would have had the tax code applied as per the invoice details.
 
Marilyn

Edited at 21 May 2013 04:05 PM GMT

  • A clever person solves a problem.

    A wise person avoids it.

    Albert Enstein


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  • 58 posts
  • # 91089

> Hi Marilyn, thank you for your advise. It is for the water bill which is one invoice but paid on a monthly DD payment plan - I thought the invoice is T1 I shall have to check tomorrow and also let you know how I have been recording the monthly payments ... Jo'Anne
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  • 58 posts
  • # 91093

Hi Marilyn,

Yes as I thought I've got our water bill as T1 - as it has it on the bill for the water element but I have the sewage element as T0....

And I am paying it monthly as Payment on Account....(via Supplier payment) is that not correct?

Thank you for any advice you have
Jo'Anne

Edited at 22 May 2013 09:52 AM GMT
  • 794 posts
  • # 91118

Hi Jo'Anne,

Yes you are correct in paying it via 'suppler'payment' but you have to allocate the payment(s) to the invoice.

If in the supplier account you currently have the full amount of the invoice and all the bank payments listed with a * against them you will have to allocate all the payments to the invoice - because they are not really payments on account as they are reducing the outstanding balance of original invoice.

To allocate just process through bank as supplier payment by entering the amount being paid against the invoice and then click on your payment on account amount as 'paid in full' - this should then show that the amount going out of bank is 0.00 as you have already made the payments and are only allocating them.

Hope this is clear enough for you as not very good putting it into words!

Marilyn

  • A clever person solves a problem.

    A wise person avoids it.

    Albert Enstein


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  • 58 posts
  • # 91146

Hi Marilyn,

Thank you - your advice is invaluable - :-)

Jo'Anne 
  • 794 posts
  • # 91153

Hi Jo'Anne,

I'm happy that you understood my explanation.

Feel free to ask for assistance any time and if I can help I'll gladly do so.

Have a good day.

Marilyn     
  

  • A clever person solves a problem.

    A wise person avoids it.

    Albert Enstein


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  • 25 posts
  • # 92104

Hi,

Can I just high jack this thread.

So from reading the conversation above, utility bills can go on the VAT Return but you only put the payment through when you receive the invoice not the monthly direct debt. Is that correct?

I am very new to this

Thanks
Sarah 
  • 794 posts
  • # 92105

Hi Sarah,

No I think you have misunderstood.

If you pay utility bills by fixed monthly DDBT normally you will receive an invoice for services eg quarterly.

You would post the DDBT payment to the supplier account as a Payment on Account then post the invoice to supplier account when you receive it.
Then you would have to allocate the payments or part payments to the invoice(s).

Marilyn     

  • A clever person solves a problem.

    A wise person avoids it.

    Albert Enstein


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