I currently do the book-keeping for my husbands sole-trader, VAT registered business and use Sage Instant Accounts.
My Accountancy firm have completely confused me with regards to the T0, T2 and T9 VAT codes by giving me contradicting advice, so I am just seeking some clarification that the following is correct:
T0 - Postage costs i.e. stamps, Books and anything for which there is a VAT invoice which states that the goods are zero rated.
T2 - Bank charges, insurance (Vehicle and Liability) as these are exempt from VAT rather than 0 rated
T9 - Drawings, wages, national insurance contributions etc as these are outside the scope of VAT
Also, can anyone confirm whether Road Tax is T2 or T9. I presume T9 but am not 100% sure.