Here’s some important information from Concentrix Support on how to change VAT rates in Sage 50 Construct linked to Sage 50 Accounts, and Sage 50 Manufacturing linked to Sage 50 Accounts.
Please read each section of this article thoroughly before taking any action.
From 1st January 2010, the UK standard rate of VAT will increase from 15% to 17.5%. This article explains how this change affects Sage 50 Construct linked to Sage 50 Accounts, and Sage 50 Manufacturing linked to Sage 50 Accounts and what you need to do.
The following are not affected by the change in VAT rate:
-Zero-rated goods, for example, basic food stuffs, children's clothing and children's footwear
-Goods and services subject to VAT at the reduced rate of 5%
Note Concentrix is unable to advise which VAT rate you should apply in specific circumstances. If you are unsure, please confirm the correct VAT rate with HMRC either by phone or by consulting the relevant guidance on the HMRC website, http://www.hmrc.gov.uk.
How to Change the VAT Rate in Sage 50 Construct v11.0.0 Upwards with Sage Line 50
First, change the standard rate of VAT in your accounting package according to the program's instructions – visit the Sage website page Sage 50 Legislation Changes for information on how to do this.
After making the change in your accounts, log directly into Construct and run Utilities > Load Accounts. Note: If you cannot see Utilities on your menu, go to Tools > Users and change the TreeMenu by selecting 'Construct' from the drop-down list.
How to Change the VAT Rate in Sage 50 Construct v10.0.0 and Below with Sage Line 50
For users of Sage Construct version earlier than v 11.0.0, follow advice for Standard VAT of VAT rate in your accounts program but do not run 'Load Accounts'. Construct will pick up the VAT rate automatically from the accounts program.
Entering Late Subcontractor or Supplier Invoice:
If you enter either of the above and they are to be invoiced at the old rate of 15% you will need to create a new VAT code. Please follow the advice at Sage 50 Legislation Changes and then run the procedure for Load Accounts.
To Credit a Subcontractor or Supplier Invoice at the old VAT rate:
There may be occasions when you need to credit invoices at the old VAT rate. If you need to do this, you should create a new tax code at the old rate of VAT - see the Sage 50 Legislation Changes page and then run the procedure for Load Accounts.
How to Change the VAT Rate in Sage 50 Manufacturing with Sage Line 50
No settings need to be altered within Sage 50 Manufacturing. You will need to change the standard rate of VAT in your accounting package according to the program's instructions - see the Sage 50 Legislation Changes page for advice.
Further Help and Information
If you are a Concentrix customer with a current support contract and are experiencing any problems changing VAT rates in Sage 50 Construct or Sage 50 Manufacturing, please contact the Concentrix support desk on 01509 410555 or email [email protected].
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