Sage - Posting Invoices For Non Vat Registered Company

columbia

Hi

Hope the exams went well for you all.

I have a quick question, I have been asked to input accounts onto Sage for a company who is not registered for VAT.

Do I set all customers/suppliers to T0 tax code so that the whole amount of the invoice posts to the accounts, instead of the usual T1 tax code which spilts out to net amount and vat totals.

For non sage users I simply mean instead of for example entering £40 net and £7 vat would I just enter £47 in the net column and a zero amount in the vat column.

It's the end of the week and my minds slowing down!!

Thanks

Tracy

>Michaela<

Do not quote me on this but when you set up sage does it not ask you whether the company is registered for vat?

columbia

Yeah it did Michaela, I said it wasn't. I have decided to set all the accounts to T0 then it won't generate anything for vat, I think that is the correct way to do it, I am used to vat registered clients so it gave me a brain freeze!

Thanks

Tracy

Jan

Hi Tracy

I remember seeing somewhere when I set up a company like this to set all the accounts to T9. That way if ever they have to register these transactions won't be picked up. If you ran the VAT return then and you'd previuosly set them as T0 you'd have lots of unreconciled transactions.

columbia

Thanks Jan

That makes a lot of sense. I had a hunt round my home office last night, and my notes say that T0 is for UK zero rated items and exports outside the EC, and T9 is for non-vatable transactions, I agree that T9 will not be picked up on a VAT return, so I will change the default setting to T9.

Fortunately all I had done on the accounts so far was to alphabetically and numerically organsise a years worth of tatty receipts and invoices which were given to me in a random heap!, and key in the names and addresses of suppliers and customers, so I will be able to amend the records now before I start to input.

Thanks a lot of your help.

Tracy