Accounts, Tax and VAT infoblog! -

Sage tips and advice

July 27, 2010

How do I change the VAT rate in Sage Instant accounts?

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.

Select ‘Edit’.

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!!

  1. Hi just started using sage instant a/cs package. I have put an opening balance when setting up company and this has put a debit on my bank a/c and a credit in the suspense a/c. Where should i transfer this amount from suspense a/c to? Hope you can help.

    Comment by tracey taberner — January 21, 2011 @ 11:34 pm
  2. Hi Tracey

    If your business has been running for a number of years, then the suspense account will be cleared when the previous year’s opening balance journal is entered. The journal should be provided by the accountant.

    If the business is new, then was the money introduced into the business by the owner? If so the money would new to be shown as either capital introduced (sole trader/partnership) or as a credit on the director’s loan account (if a limited company).

    Kind regards

    Dave

    Comment by admin — February 1, 2011 @ 6:06 pm

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