Tax Codes In Sage50c

I don't know about you, but with Brexit, reverse charge, CIS changes and Domestic Reverse Charge VAT I am getting really confused about tax codes in Sage50c ...

I spotted where I had made a mistake in my own accounts this week on my pre VAT return submission checks. I had chosen codes for if I was based in the Republic of Ireland by mistake instead of the UK ones.

So, where are the best resources on the Sage Knowledgebase for you to find which VAT codes you should be using post-Brexit and if you are on the latest version?

If you go to Settings then click on Configuration and choose the VAT Codes page you can see how each code is made up and what tick boxes you need for each scenario. It means that if you have a company that has not used the default tax codes in the past, you can still know how to set up your new bespoke codes so the right entries go into the right boxes in your VAT return.

An example of one giving people a lot of headaches are the codes where you no longer pay the supplier the VAT. You now only pay the net amount, but you need to report the VAT in both boxes 1 and 4 of the VAT return so no money changes hands, but you have included the amounts in the return.

An example of this is T24 which is standard rated purchases of services from suppliers in the EC. Now, what you need in this case is 20% in the 'Linked To' box in Sage, but 0% in the settings on the left. I found in my copy of Sage50c this was actually set up wrong after I did the upgrade and I had to correct this myself.

So, if VAT codes are really confusing you then try thinking about where in your VAT return you need the numbers to go and look up the codes here to get the settings correct.

If you are still really stuck then you can use the Sage Tax code finder.

If anything I've written here resonates with you, call me on 01604 420057 and let's see how we can help you.