Comments for Accounts, Tax and VAT infoblog! http://accountsinfo.sunsetsurf.co.uk Tue, 01 Mar 2011 10:24:01 +0000 http://wordpress.org/?v=2.8.6 hourly 1 Comment on Sage questions no longer available. by admin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-836 admin Tue, 01 Mar 2011 10:24:01 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-836 Hi Michelle Your question is a really getting into VAT rather than just Sage and I have to be careful about giving too much advice on VAT. If the company pays for the telephone bills and the bills are in the name of the company, then all you need to do is request that the phone providers send you a 'VAT receipt'. By the phone provider putting 'this is not a VAT receipt' it means that they have intentionally not put certain information on the invoice so that it does not count as a VAT invoice. With your 'issue' there are lots of other things to consider other than just VAT....you need to think about the P11d's, the way the Corporation Tax has been calculated, plus the VAT. So I really can't give a complete and 100% definitely correct answer without knowing how the accountant has dealt with it all. So in summary, you really need to speak to the company accountant, because this is more involved than it first sounded. Hope that helps. Kind regards Dave Hi Michelle

Your question is a really getting into VAT rather than just Sage and I have to be careful about giving too much advice on VAT.

If the company pays for the telephone bills and the bills are in the name of the company, then all you need to do is request that the phone providers send you a ‘VAT receipt’. By the phone provider putting ‘this is not a VAT receipt’ it means that they have intentionally not put certain information on the invoice so that it does not count as a VAT invoice.

With your ‘issue’ there are lots of other things to consider other than just VAT….you need to think about the P11d’s, the way the Corporation Tax has been calculated, plus the VAT. So I really can’t give a complete and 100% definitely correct answer without knowing how the accountant has dealt with it all.

So in summary, you really need to speak to the company accountant, because this is more involved than it first sounded.

Hope that helps.

Kind regards

Dave

]]> Comment on Sage questions no longer available. by admin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-835 admin Tue, 01 Mar 2011 10:00:48 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-835 Hi Justin I would post them as normal to the 'entertainment' nominal code. Then when your accountant prepares the accounts, he should 'add back' the entertaining expenses in the Corporation Tax computations. You need to leave them in the entertaining code so that when you run a Profit and Loss account they correctly show as a business expenses, which they are. Kind regards Dave Hi Justin

I would post them as normal to the ‘entertainment’ nominal code. Then when your accountant prepares the accounts, he should ‘add back’ the entertaining expenses in the Corporation Tax computations. You need to leave them in the entertaining code so that when you run a Profit and Loss account they correctly show as a business expenses, which they are.

Kind regards

Dave

]]> Comment on Sage questions no longer available. by admin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-834 admin Tue, 01 Mar 2011 09:56:27 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-834 Hi Janice Option A would be to do what you suggest, which should be ok as long as your later data all balances. Or Option B, you could enter a dummy bank receipt for the total cheque, date it on the incorrect date in December. Then date a dummy payment on the correct date in November. When you do the bank rec you reconcile the dummy payment in November. Then in December when you do the bank rec you reconcile both the original payment and also the dummy receipt. That would work. The dummy receipt and payment would be coded to 9998 nominal account. Kind regards Dave Hi Janice

Option A would be to do what you suggest, which should be ok as long as your later data all balances. Or Option B, you could enter a dummy bank receipt for the total cheque, date it on the incorrect date in December. Then date a dummy payment on the correct date in November. When you do the bank rec you reconcile the dummy payment in November. Then in December when you do the bank rec you reconcile both the original payment and also the dummy receipt. That would work.

The dummy receipt and payment would be coded to 9998 nominal account.

Kind regards

Dave

]]> Comment on Sage questions no longer available. by Michelle http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-832 Michelle Sat, 26 Feb 2011 11:52:18 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-832 I forgot to say, they do claim part of their telephone bill as use of home phone for work, the accountant sorts this out at the end of the year. In that case, can part of the home phone bill be reclaimed, or is it all just a non VAT expense, are they are reimbursing the user for phone calls or part paying the bill to the phone company? Thanks again Michelle I forgot to say, they do claim part of their telephone bill as use of home phone for work, the accountant sorts this out at the end of the year. In that case, can part of the home phone bill be reclaimed, or is it all just a non VAT expense, are they are reimbursing the user for phone calls or part paying the bill to the phone company?

Thanks again
Michelle

]]> Comment on Sage questions no longer available. by Michelle http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-831 Michelle Sat, 26 Feb 2011 11:41:48 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-831 Dave, thanks for the response re the telephone bill enquirey, after looking into it further, there are 3 home telephone bills (and internet)that come direct to the company. Two of these belong to directors and one is the operational managers bill. One of the directors phone numbers is included in the business account with the phone company, the other 2 are classed as residential lines. From your reply I would guess that I can re-claim the VAT on the one home number that is included in the business account, but not the other two, would you agree? The bills are addressed to the company, and don't have the home addresses or names of the owner of the phone on them, but clearly state they are not VAT receipts, unlike the business lines. I want to get this right, before I approach them, if this is the case, then their VAT has been wrong for years. I feel it's my responsibility to finally get this right. Many Thanks for your help, Dave. Michelle Dave, thanks for the response re the telephone bill enquirey, after looking into it further, there are 3 home telephone bills (and internet)that come direct to the company. Two of these belong to directors and one is the operational managers bill.
One of the directors phone numbers is included in the business account with the phone company, the other 2 are classed as residential lines.
From your reply I would guess that I can re-claim the VAT on the one home number that is included in the business account, but not the other two, would you agree? The bills are addressed to the company, and don’t have the home addresses or names of the owner of the phone on them, but clearly state they are not VAT receipts, unlike the business lines.
I want to get this right, before I approach them, if this is the case, then their VAT has been wrong for years. I feel it’s my responsibility to finally get this right.
Many Thanks for your help, Dave.
Michelle

]]> Comment on Sage questions no longer available. by Justin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-829 Justin Thu, 24 Feb 2011 15:43:33 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-829 Hi there, I am quite new to Sage Instant Accounts and was wondering how you log expenses that are entertainment (i.e. no offset against Corporation Tax ) ? thanks Justin Hi there,
I am quite new to Sage Instant Accounts and was wondering how you log expenses that are entertainment (i.e. no offset against Corporation Tax ) ?

thanks
Justin

]]> Comment on Sage questions no longer available. by Janice Walker http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-828 Janice Walker Tue, 15 Feb 2011 12:58:55 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-828 Hi, I have posted a cheque with an incorrect date - December rather than November, as it was cashed in November the value of the cheque is the difference in the bank reconciliation. I cannot change the date of the cheque to the correct date as it was for a contractor and has been included in the CIS return to HMRC, can you recommend a solution? One options is that I do not reconcile November but include and reconcile in December. Is this something that would be okay? TIA Janice I Hi, I have posted a cheque with an incorrect date – December rather than November, as it was cashed in November the value of the cheque is the difference in the bank reconciliation. I cannot change the date of the cheque to the correct date as it was for a contractor and has been included in the CIS return to HMRC, can you recommend a solution? One options is that I do not reconcile November but include and reconcile in December. Is this something that would be okay? TIA Janice I

]]> Comment on Sage – How to reconcile the bank account by admin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-how-to-reconcile-the-bank-account/comment-page-1/#comment-827 admin Fri, 11 Feb 2011 14:36:16 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=103#comment-827 Hi Jodie Ok so firstly you will need to enter a dummy supplier invoice for the total of the purchase payments, post this dummy invoice to code 9999. This will then correct the supplier account and show the money that is correctly owed to the supplier. Include VAT on the invoice. Then enter a dummy bank receipt to code 9999. Ensure the VAT for the receipt matches the VAT claimed on the previous supplier payments. Then when you come to reconcile the bank account, you should highlight the supplier payment that has never cleared the bank....and the dummy bank receipt....match these off and click reconcile. I hope that is clear? Kind regards Dave Hi Jodie

Ok so firstly you will need to enter a dummy supplier invoice for the total of the purchase payments, post this dummy invoice to code 9999. This will then correct the supplier account and show the money that is correctly owed to the supplier. Include VAT on the invoice.

Then enter a dummy bank receipt to code 9999. Ensure the VAT for the receipt matches the VAT claimed on the previous supplier payments.

Then when you come to reconcile the bank account, you should highlight the supplier payment that has never cleared the bank….and the dummy bank receipt….match these off and click reconcile.

I hope that is clear?

Kind regards

Dave

]]> Comment on Sage nominal code for Dividends by admin http://accountsinfo.sunsetsurf.co.uk/2009/08/sage-nominal-code-for-dividends/comment-page-1/#comment-826 admin Fri, 11 Feb 2011 14:28:55 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=77#comment-826 Hi Vladimir A dividend payment is a payment of after tax profits......paying out to the shareholders the profits available. It is not a P & L expenses and so Sage does not show the dividend in the P & L account. So say the company made a profit of £100,000 and paid £21,000 of corporation tax.....the maximum dividend that could be paid would be £79,000. This would be shown in the profit and loss account on the <strong>balance sheet</strong>. Kind regards Dave Hi Vladimir

A dividend payment is a payment of after tax profits……paying out to the shareholders the profits available. It is not a P & L expenses and so Sage does not show the dividend in the P & L account. So say the company made a profit of £100,000 and paid £21,000 of corporation tax…..the maximum dividend that could be paid would be £79,000.

This would be shown in the profit and loss account on the balance sheet.

Kind regards

Dave

]]> Comment on Sage questions no longer available. by admin http://accountsinfo.sunsetsurf.co.uk/2009/09/sage-questions-anyone/comment-page-1/#comment-825 admin Fri, 11 Feb 2011 14:25:30 +0000 http://accountsinfo.sunsetsurf.co.uk/?p=98#comment-825 Hi Jane, Sorry I haven't come across that problem before. When visitors to my site have these type of questions I have to ask them to contact Sage because it sounds more like a 'program' glitch, and although I use computers a lot, I am not a computer whizz. Kind regards Dave Hi Jane,

Sorry I haven’t come across that problem before. When visitors to my site have these type of questions I have to ask them to contact Sage because it sounds more like a ‘program’ glitch, and although I use computers a lot, I am not a computer whizz.

Kind regards

Dave

]]>