DIY accounting software, tax
accounting, payroll software, limited company formation UK
Vat calculator, vat registration, vat threshold, vat returns form
DIY Accounting Self
Employed
accounting package is for self employed small business that are already VAT
REGISTERED or may become vat registered in the next 12 months should total
sales turnover reach the vat threshold level that was increased in the April
2009 budget to £68,000 p.a. and reviewed annually in the budget. The self
employed tax accounting package contains a vat form that is an automated vat
calculator. No manual entries are required as the vat calculator collects all
the sales and purchases from the data entry sheets for the vat form which has
the same box numbers as the standard quarterly vat returns form.
For non vat registered business the vat
calculator is still present but dormant when Zero replaces the 15% vat rate on the sales and
purchase spreadsheet. This enables the Accounting Software to be used by both
vat registered and non vat registered business and those businesses using a Vat
Flat Rate Scheme. To activate the vat calculator should the vat threshold be
reached and the business becomes vat registered the change is simple. Enter the
vat rate at the top of the vat column on the sales sheet when vat registered and
the vat calculator does the rest.
Vat Flat Rate scheme simply alter the vat rate
on the first sales sheet to the vat flat rate percentage and the vat flat rate scheme is then fully operational
and automated.
This is the actual note contained
in the user guide that accompanies all packages purchased as an example of the
detail the accounting package User Guides contain to assist clients:
CHANGE REQUIRED IF VAT FLAT
RATE REGISTERED
Businesses with a turnover
including vat of under £150,000 p.a. may adopt a flat rate vat scheme the vat rate
varying according to the industry.
When a flat rate scheme is
adopted invoice sales including the 15% standard vat rate.
Also change the vat calculation
throughout the accounting system by entering the vat flat rate just once as
follows:
Go to
Sales SpreadsheetColumn H Row 4 Cell H4 (this cell is shaded light
blue)
Enter the VAT FLAT
RATE PERCENTAGE
This entry to the sales
spreadsheets are then automatically carried forward to the remaining months
effectively changing the collection of vat from the standard rate to the Flat
Rate percentage.
In addition it shows sales
turnover net of the flat rate percentage and accounts for all purchases
including vat input as a business expense on the automated vat return form.
THE VAT
CALCULATOR
HM
REVENUE & CUSTOMS QUARTERLY VALUE ADDED TAX RETURNS AUTOMATED
No Entries
required – fully automated quarterly vat form ready for transferring
figures direct to the value added tax return. The Vat return shown below is the actual vat
spreadsheet that the vat calculator produces within the financial accounting software
enabling the potential vat liability to be viewed at any time during the vat
quarter.
Protect
the sales and purchase excel spreadsheets after completion and you have a
complete audit trail if inspected
Screenshot of actual vat return
form produced by the vat calculator
The vat threshold at which small
businesses must seek a vat registration usually changes in the budget each
March. Currently, for the financial year
to 5 April 2008, small businesses that reach the vat threshold of £67,000
p.a. should register for vat unless this sales turnover has been exceptional and
not likely to be repeated on an ongoing basis.
Sole traders should note the legal
position regarding vat that under the customs rules any business whose sales
exceed the vat threshold increased from 1st May 2009 to £68,000 p.a., are liable to pay vat at 15%
on their sales turnover whether they register with HM Revenue & Customs
for vat or not. The vat rate of 15 per cent was set as from December 2008 for 13
months and can be easily changed whenever a new vat rate is announced. The 17.5
vat rate returns on 1 January 2010.
Value Added Tax (VAT)
VAT is a tax
on the final consumption of certain goods and services.
HMRC formerly the separate
Customs and Excise is the vat gov agency who
issue vat numbers. Use the categories
below to browse HMRC VAT publications which
include introductory guides on key topic areas,
detailed guidance from Public Notices as well as
information sheets and business briefings. If
you cannot see exactly what you are looking for,
try searching for all VAT publications in the
HMRC
Library.
including vat forms.
Introduction to VAT This is a summary of
the most common VAT issues and a good place to start
finding out how it affects you and your business.
Managing your VAT Includes guidance on
setting up and keeping VAT records, details of
common errors made, and help if you have payment
problems. Information on Motor Trade issues
is also available.
Registering for VAT
Registering for
VAT is compulsory for some companies and voluntary
for others. Find out how your business fits the bill
and how to get registered. The vat number is
allocated on registration.
Special Schemes & Options HMCE have a
range of special schemes and options to simplify VAT
for small businesses. See if you qualify for a vat flat
rate scheme or would prefer to spread your payments
over fixed, monthly instalments.
VAT & International Trade There are import
rules and procedures for dealing with VAT on
international trade. See this section for relevant
material.
"Tax
Accounting self employed vat calculator notes on vat
threshold, vat form, quarterly vat returns and
registration, vat rate and flat rate scheme"
DIY accounting software, tax
accounting, payroll software, limited company formation UK 
