Vat 2% flat rate scheme Actinic Link Help

[wesleythorne]

Hi, we run both sage line 50 and actinic v8 but not actinic link as yet, looked into it some time back but the whole actinic retail vat set up put us off.
This coming tax year we need to have link up and working, the problem I see is that we are on the 'flat rate' vat scheme and pay 2% vat of overall sale to the vat man.

My questions are:
1. If actinic is set up to include vat at 17.5% how will the sage link work.

At present we enter sales into sage inclusive of vat at 17.5 and then apply a vat rate of 2% to calculate the net.

2. Can actinic handle flat rate schemes with its sage link ? if so what's the best way to go about it?

We only really need to enter a daily figure of sales under a generic customer as our business is retail, we do not require an account for each customer.

Kind Regards
W.Thorne

[Mike Hughes]

I'm not sure I understand what the problem is.

Under the flat rate scheme, you charge the normal VAT rate to your customers and you pay the normal VAT rate to your suppliers.

The only difference is that when it comes to paying the VATman you just pay him 2% (is it really only 2%?) of your sales rather than having to add up all your sales VAT and subtracting your supplies VAT.

Your accountant should be able to tell you for sure, but I would imagine any difference between the 'real' VAT figure and the '2% of sales' amount is transferred to an 'other income/loss' account once a quarter.

Mike

[TraceyG]

Hi,

I'm not an expert on VAT but I'll see if I can make it clear. If you decide to add VAT in Actinic then your product prices will have to be entered as excluding VAT. If you charge everyone VAT then you just need to set the Tax settings to 'simple' tax in Actinic. In the Link settings you would then set to 'Actinic uses 'simple' tax and then map the taxes in Actinic to the tax codes in sage, ie:

Actinic Tax Rate..........Sage Tax Code
17.5%........................T1 17.5%
Zero-rated..................T0 0
Exempt.......................T2 0
Pro-Rata.....................T1 17.5%

The taxes will then be transferred to the relevant sage tax code

We only really need to enter a daily figure of sales under a generic customer as our business is retail, we do not require an account for each customer.

You can tell Link to transfer payments to a default account in Sage.

HTH