Stock and Vat on profit?
Hi, I have just started using the trial version, I am entering info from my last vat quarter up to today's date, how do I enter my caravan stock (and the cost price) that i already have and how do I work out the VAT which has to be paid on my profit margin when I sell one as it appears to treat this is a non vatable item and wont show on my vat return, also how would I enter and show an invoice where I have took a deposit on a caravan sale and am waiting for the balance? Regards Lee
Lee Brown - February 19th, 2010 10:21pm GMT
Hi Lee,
It sounds like you are using the VAT Margin Scheme for second-hand goods. Unfortunately Solar Accounts doesn't automatically calculate your VAT under this scheme.
When you buy and sell items under the scheme, enter a VAT rate of 0%. At the end of your VAT period you will need to manually calculate the VAT due under the margin scheme, and make two adjustments:
1. Record a General Transaction from the VAT Liability account to the Sales Income account. This decreases your income for the period.
2. Add the VAT amount to Box 1 of your VAT return. This will increase the amount of VAT you pay to HMRC.
The simplest way to record a deposit is to create a new liability account called 'Customer Deposits', then record a General Transaction from this account to the Cheque Account. Later, when you issue the invoice, record two invoice payments: the first for the deposit amount with the Deposit Into Field set to 'Customer Deposits', and the second for the balance amount with the Deposit Into Field set to 'Cheque Account'.
Regards,
It sounds like you are using the VAT Margin Scheme for second-hand goods. Unfortunately Solar Accounts doesn't automatically calculate your VAT under this scheme.
When you buy and sell items under the scheme, enter a VAT rate of 0%. At the end of your VAT period you will need to manually calculate the VAT due under the margin scheme, and make two adjustments:
1. Record a General Transaction from the VAT Liability account to the Sales Income account. This decreases your income for the period.
2. Add the VAT amount to Box 1 of your VAT return. This will increase the amount of VAT you pay to HMRC.
The simplest way to record a deposit is to create a new liability account called 'Customer Deposits', then record a General Transaction from this account to the Cheque Account. Later, when you issue the invoice, record two invoice payments: the first for the deposit amount with the Deposit Into Field set to 'Customer Deposits', and the second for the balance amount with the Deposit Into Field set to 'Cheque Account'.
Regards,
Mark McLaren (Solar Accounts) - February 21st, 2010 10:10am GMT