I use Sage Instant Accounts V14 to record VAT transactions. I use the cash accounting scheme and the Vat liability has been calculated and recorded using the Sage transfer wizard. I then transfer the figures to the HMRC online form and file the return. I have now registered to use the flat rate scheme wef 1st Oct and am thinking ahead to the Dec quarterly return. Sage does not seem to have a flat rate accounting facility and I am expecting to have to manual calculate the liability and adjust the nominal ledger in Sage. My intention is to not record any VAT liability on purchases (ie make them all T9) but continue to record standard rate sales at 17.5%.
Is this the correct approach?
If so, can anyone help me work out identify the journal entries I will need to make in Sage to adjust the Sage Nominal ledger to account for the difference between 17.5% and the flate rate (say 11.5%) I use the standard Sage nominal codes ie Sales tax control 2200 Purchase tax controll 2201 Vat liability 2202 Any assistance/advise appreciated
Just had a look at Sage website. From what I can gather Sage Instant (and Plus) cannot automate the flat rate scheme (it's not listed as a function for v16 so am guessing it's not available below that either. It is available for sage Accounts, Accounts plus, Accounts Professional.
There is a method of dealing with the flat rate scheme listed in Ask Sage but it is to complex to quote on the forum.
If you are interested, go to Ask Sage on the Sage website (you will need to register the software, if you are not already registered) and search article 11741
Thanks Bill, And I thought there was an easy solution! By the way, if anyone else is interested in this subject have a look at the article 11965 (for the VAT cash based scheme) and 11964 (how to download reports for the Flat rate scheme) Thanks again