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Sage 50 switch from flat rate cash based method

Client switching from flat rate cash based method to cash accounting - Sage 50 issue

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I have a client who has had to leave the flat rate scheme at end of Feb due to exceeding the 230K turnover threshold.

VAT returns have been prepared under the flat rate cash based method and client is switching to cash accounting.

Bookkeeping is done on Sage 50, have followed the instructions provided by Sage to switch schemes expecting to see that all receipts for invoices issued prior to 1 March should be at the flat rate, and any subsequent invoices received at 20%. However everything is showing as 20% of cash received regardless of invoice date.

Unless I've got completely the wrong end of the stick this is incorrect.

Para 9.6 of VAT Notice 733 states - "The only exception to this is if you cease to use the FRS, but immediately start to use the cash accounting scheme described in VAT Notice 731 Cash accounting. Any business that leaves the Flat Rate Scheme and immediately starts to use the Cash Accounting Scheme should apply the appropriate flat rate percentage to any supplies made while part of the Flat Rate Scheme when payment for those supplies is received."

I've had a long day, can someone just confirm I'm not going slightly mad and that I need to put a call into Sage in the morning.


Replies (2)

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By Margaret Bell
15th Apr 2019 09:39

As I understand it, you have to change the scheme used in Settings but you can only change it if there are no outstanding transactions which have not been VAT reconciled. I had the same problem changing to cash accounting so had to do my final return and reconcile it and then make the change in settings before I input any new transactions. It worked fine.

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By spenner68
18th Apr 2019 15:50


Thanks for your reply - as far I'm aware I correctly followed the instructions provided by Sage but it hasn't worked.

Am still awaiting a response from them.

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