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Problem with Sage VAT return

Problem with Sage VAT return

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Has anyone ever come across the problem of Sage running a VAT return and picking up non sales nominal codes and including them in box 1 and 6?  I've never seen this before and have no idea how this can actually happen.  Before I sit on hold to Sage on the phone does anyone have any suggestions?

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By Cloudcounter
23rd Mar 2016 17:37

Sage doesn't

refer to nominal codes when calculating the VAT return.  It refers to the VAT code on the transaction T1 T0 T9 etc

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By Moonbeam
23rd Mar 2016 17:59

I am guessing at what your problem is...

I think you are saying non sales items are being shown in box 1 and 6. This is an age-old problem, in that Journal credits and bank receipts all get shunted into those boxes, whether or not they are to do with sales.

So just export the detailed VAT report to Excel and pick out the items that are to do with purchases rather than sales. Then in your Excel report move these items to the right area. Your total VAT should be whatever it was before, but some items in boxes 1 and 6 will have moved to the purchase VAT area.

Then file the final VAT return by logging into HMRC's website.

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By andrew1211
24th Mar 2016 11:09

Do it in SAGE

Once you have run the VAT return in SAGE you can then do 'manual' adjustments so as suggested above, work out the adjustments and then manually adjust them. At least then the SAGE VAT figures will match those that go on the submitted VAT return.

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By Democratus
24th Mar 2016 11:47

and that's why i do the VAT returns old school...

I don't trust the inputs into Sage (or any package) by anyone else. 

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31st Mar 2016 13:02

Sage & VAT Returns

I've always had that problem with Sage!!  We now use SageOne - Sage in the cloud which is worse.  The VAT Returns include exempt items which are excluded in other Sage products e.g. bank interest, insurance, Director's Loan account items.  Sage tell me I should have chosen 'No Vat'.  I thought there were only three rates - Standard, Zero and Exempt but SageOne show 'exempt' as 0% VAT. Did I miss the announcement for this change?  Naturally I don't allow Sage to submit my VAT Returns. I always do them manually on hmrc site.





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Replying to evildrome:
By sloccy123
31st Mar 2016 13:42



I agree with lyn.perry & do the same ie manual VAT return online.

There appears to be 9 VAT codes on Sage.  I use mainly T1,TO,T2 & T9'

Is there a website that lists all the categories of business expenditure for VAT purposes,other than the rubbish on HMRC website???

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By crofte
31st Mar 2016 19:18

Sage and Vat

I agree with Moonbeam about how it happens - make sure you think through journals correctly and use T9, but there are other things like if you delete certain transactions, which can be a pain.  The Vat inspector wasn't bothered, it was more the auditors who wanted a sales reconciliation from the nominal to the Vat return.  I agree about the export/manual correction (but keep a note of your adjustments if you have an audit).  When you have 44 pages to the detailed vat return it is a total pain.

This is  a fault with Sage and they are not interested in correcting it.  But that's the arrogance of Sage. Over the past year I've moved my accounts and now my payroll away from them....

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