One of my new clients uses Sage professional and only registered for VAT once they hit the VAT threshold. Probably worth mentioning at this stage that they are a restaurant so their sales are standard rated whilst a chunk of their purchases is non-vatable (food purchases) , although they obviously also have standard rated purchases too in the normal way.
I was told NOT to include 'unreconciled' items in the VAT return as if I did this it would pick up on the sales from the pre-registration period.
However I do have some grave concerns that this will also prevent them picking up on some otherwise legitimate other VAT claimbacks on purchases. EG They havent received any Rent invoices for months - Ive just chased and know there is VAT on them. If I key the invoices with the dates on the invoices (ie from Feb - now) then the ones from earlier VAT returns will not be picked up.
So - how do I get round this? Any ideas anyone?
When I key earlier invoices/receipts should I change the date and key them so they are allocated in the latest VAT period? Or Is there a way in Sage to include the unreconciled items, without including all the original pre Registration stuff? or - something else I need to do.
They have another new restaurant they are setting up - how should I key the pre-VAT registration VAT standard sales to prevent this happening in fture once it is registered (as eg T0, or even say T2 - non vatable)??
I hope someone can help - I have the VAT return to do tomorrow and panicking a bit!!!!!!!!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thats what I thought after I had sent the original email, but I will need to double check what has actually been done (especially after the strange instructions I got!!). I will certainly do all the new restuarants stuff at T9. Thanks you!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Well as you know, when a business is not VAT registered, they post all transactions as T9 until they become VAT registered... so when you run your first return, you shouldnt have any pre reg sales pulling into it?
haha - thats the theory, but when you have to follow what others have done then it can become a nightmare. I just had the previous book-keeper on the phone about the previous VAT - clearly worried, not helped by me telling him about the VAT wizard to be done at each quarter as he hadnt come across that one. I felt sorry for the guy as he was clearly stressing more than me! Tomorrow is a another day and if I have time whilst Im there I will try to sort it, although it might have to wait til next month as Im only there for one day a week and have to work miracles in that short space of time as it is! At least I can try to get the new business right fom the beginning!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I would run a vat return up to the date of registration and then reconcile all those items, in theory there should be no input or output vat and if there is this should be corrected first (if witching the financial year and you are able to)
This would then allow any future items to be picked up in vat returns that relate to previous vat quarters
