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
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,
I just tried creating my vat margin scheme sales invoice by entering the margin amount vat is charged on as the first invoice line, then entering the second invoice line for the remainder that no vat is charged on at zero rate. This then allows solar accounts to automatically calculate the correct vat return form. Please advise if you see any problems doing it this way. Thanks Dave
Hi Dave,
Yes that sounds fine, and it's simpler than my previous suggestion!
Also, you need to be careful that you don't show VAT separately on your invoice - this is an HMRC requirement. The simplest way to do this is to export the invoice to a spreadsheet, then use Microsoft Excel to delete references to VAT.
Regards,
