Following the recent emergency budget, here in the UK we are all going to pay a higher rate of VAT. (20% from 4 January 2011)
Thankfully, we have been given plenty of notice before the VAT rate changes.
So here is how to change the VAT standard rate in Sage:
Click on ‘Settings’
Then select ‘Configuration’…this will take you to the ‘Configuration editor’
Select the ‘Tax codes’ Tab.
Here you can change the rate of Vat for the main ‘T1′ tax code.
It would be worth having a separate ‘T’ code with the old rate of 17.5% so that if during the change in January you have any invoices with the old rate, you can use the alternative code.
ps. If you have any large purchases planned, it may well be very beneficial to make the purchase before 4 January 2011, this will save you a few pounds!!