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.
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 standard rate (20% in 2013) 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 standard VAT rate (20% in 2013).
Also change the VAT calculation throughout the accounting system by entering the VAT flat rate just once as follows:
Go to Sales Spreadsheet Column 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 Aptil 2017 to £85,000 p.a., are liable to pay VAT at standard rate (20% in 2013) on their sales turnover whether they register with HM Revenue & Customs for VAT or not. The standard VAT rate is 20% in 2013.
Value Added Tax (VAT)
VAT is a tax on the final consumption of certain goods and services.
Businesses can register for VAT online at: VAT Online Registration Service following the VAT number is allocated
Further guidance is available from the HM Revenue & Customs website VATportal at:
HM Revenue & Custom Information and Guides
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 VATnumber is allocated on registration.
Special Schemes & Options HMRC 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"