You may need to change the VAT rates in your Sage accounts.
Changing the VAT rates from 21% to 23% is a relatively easy thing to do in Sage.
The only complication is that you will be recording January transactions @ 23% but you will still need to process some December transactions at 21%.
Will you consider the following please.
When you are happy with its implications will you follow the instructions?
- Take a Backup of your Sage company data. Use this opportunity to check for errors. If you have errors these need to be eliminated. If you can’t do this yourself then please come back to us for advice.
- Log into your Sage Accounts, go to Settings and Configuration
- Click on the Tab for Tax Codes
- Highlight the tax code you are currently using for 21% and click on Edit
- Change the Vat Rate and Description from 21% to 23%
- Click on OK to close
- Scroll down to T6, or something similar
- Change the Vat Rate and Description from 20% (or whatever it is) to 21% and in description say Old 21% Rate. Make sure there is a tick to include in VAT return.
- Click OK to close
- Click on Apply and Close when you have finished editing the Tax Codes.
Then, from the first of January you will be using T1 for the 23% rate for sales and purchases.
Where you are entering 2011 transactions and need the 21% rate then you use the T6 or appropriate label.
If you have any problems come back to us at firstname.lastname@example.org