Sage: T accounts

MamboMouse Registered Posts: 10 Regular contributor ⭐ 😼 ⭐
Help! I know this was probably covered at Foundation level, but I skipped that stage... and some very basic knowledge! Previous bookkeepers using my copy of Sage have been inconsistent, so I'm just getting more confused:

Are Business Rates VAT exempt, or zero-rated? ie. in Sage, are they T0, T2 or T9?


  • Jan
    Jan Registered Posts: 654
    I use T9 - then doesn't appear on VAT return. Have not been told otherwise when my bookkeeping used to produce accounts by the companies accountant.
  • Peter W
    Peter W Registered Posts: 22 Dedicated contributor 🌟 🐵 🌟
    Agreed - T9. Para 5.8 of VAT Notice 700/12 confirms that local authority rates should be excluded from the VAT return, and code T9 on Sage will achieve this.
  • sarahwilson
    sarahwilson Registered Posts: 567
    We put ours to T2 how much of a problem is this likely to be?
  • A-Vic
    A-Vic Registered Posts: 6,970
    Difference between T9 & T0

    We use T0 for things not to be shown on Vat Returns E.G drawings bank transferes wages and everthing else we set as T9 (this includes business rates)
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    But T0 appears on the VAT return?

    We do the accounts for a roofing company and their sales are nearly all zero rated (so are posted with T0). The net sales appear on the VAT return.

    To my knowledge it's the same for T2.

    Business rates shouldn't be on the VAT return so should be T9 in my opinion.
  • sarahwilson
    sarahwilson Registered Posts: 567
    Thanks for that Blue Wednesday, I don't have the knowledge of Sage or VAT returns to question stuff but I don't want to just blindly do things that aren't correct.
  • MamboMouse
    MamboMouse Registered Posts: 10 Regular contributor ⭐ 😼 ⭐
    Many thanks for your help all. Had posted to T2 as exempt but will adjust to T9.
  • A-Vic
    A-Vic Registered Posts: 6,970
    Just Asked

    Blue you are right - we just changed the format in sage so that it can be reversed so that T0 doesnt show on Vat returns and T9 does - (due to plank previous employee puting over a 1000 invoices in as T0 and save having to redo them)
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