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T0 or T9

 
 
Dan
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      07-13-2004, 10:33 PM
Hi, I'm new to sage line 50 and was wondering what the difference is between
the tax codes T0 and T9.

Am I right in saying for example that postage stamps that don't have VAT
would go to T0, but say when posting an Invoice from the gardener whom isn't
VAT registered would be classed as a T9 ?

Dan.


 
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Peter Saxton
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      07-13-2004, 11:57 PM
On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <(E-Mail Removed)>
wrote:

>Hi, I'm new to sage line 50 and was wondering what the difference is between
>the tax codes T0 and T9.
>
>Am I right in saying for example that postage stamps that don't have VAT
>would go to T0, but say when posting an Invoice from the gardener whom isn't
>VAT registered would be classed as a T9 ?
>
>Dan.
>

What does your manual say?


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Peter Saxton from London
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Dave
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      07-14-2004, 04:30 AM
In article <(E-Mail Removed)>,
(E-Mail Removed) says...
> On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <(E-Mail Removed)>
> wrote:
>
> >Hi, I'm new to sage line 50 and was wondering what the difference is between
> >the tax codes T0 and T9.
> >
> >Am I right in saying for example that postage stamps that don't have VAT
> >would go to T0, but say when posting an Invoice from the gardener whom isn't
> >VAT registered would be classed as a T9 ?
> >
> >Dan.
> >

> What does your manual say?
>
>
>

ROFL .... manual ?

People who ask Sage questions on here don't have manuals, or Sage
Support....

 
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Martin Thomas
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      07-14-2004, 08:08 PM
Usually this is standard setup
T0 For items that are exempt from VAT ie not registered for VAT but the
goods value will be shown on VAT Return ie Rates Gardener
T1 For items that are Standard Rated ie 17 1/2%
T2 For items that are Zero Rated ie Food Postage
T3 For items that have special rates ie Electric 5%
T9 For items that are outside scope of VAT and do not goods value shown
on VAT Return ie Wages Bank Charges etc

Hope this helps

Martin

"Dave" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> In article <(E-Mail Removed)>,
> (E-Mail Removed) says...
> > On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <(E-Mail Removed)>
> > wrote:
> >
> > >Hi, I'm new to sage line 50 and was wondering what the difference is

between
> > >the tax codes T0 and T9.
> > >
> > >Am I right in saying for example that postage stamps that don't have

VAT
> > >would go to T0, but say when posting an Invoice from the gardener whom

isn't
> > >VAT registered would be classed as a T9 ?
> > >
> > >Dan.
> > >

> > What does your manual say?
> >
> >
> >

> ROFL .... manual ?
>
> People who ask Sage questions on here don't have manuals, or Sage
> Support....
>



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Peter Saxton
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      07-15-2004, 06:18 AM
On Wed, 14 Jul 2004 21:08:43 +0100, "Martin Thomas"
<(E-Mail Removed)> wrote:

>Usually this is standard setup
>T0 For items that are exempt from VAT ie not registered for VAT but the
>goods value will be shown on VAT Return ie Rates Gardener
>T1 For items that are Standard Rated ie 17 1/2%
>T2 For items that are Zero Rated ie Food Postage
>T3 For items that have special rates ie Electric 5%
>T9 For items that are outside scope of VAT and do not goods value shown
>on VAT Return ie Wages Bank Charges etc
>
>Hope this helps
>
>Martin
>

Where did you get your information from?

Sage's default setup for version 10 (and earlier as far as I can
remember) says:

T0 is for zero rated transactions
T2 is for exempt transactions

The OP is talking about inputs rather than outputs.

If there is a rate of VAT then include T1 for standard rate or include
the reduced rate code you have used. Use T0 for everything else (if no
imports) except the following (taken from
http://www.hmce.gov.uk/forms/notices....htm#P161_7966 ):

VAT itself;
wages and salaries;
PAYE and National Insurance contributions;
money put into and taken out of the business by you;
loans, dividends, and gifts of money;
insurance claims;
Stock Exchange dealings (unless you are a financial institution);
MOT certificates;
motor vehicle licence duty;
Local Authority rates; and
income which is outside the scope of VAT because it is not
consideration for a supply.

I think Martin is wrong about Rates (should be T9 not T0 and Bank
Charges (should be T0 not T9).



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Peter Saxton from London
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John-Smith
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      07-15-2004, 09:07 AM

Peter Saxton <(E-Mail Removed)> wrote:

>On Wed, 14 Jul 2004 21:08:43 +0100, "Martin Thomas"
><(E-Mail Removed)> wrote:
>
>>Usually this is standard setup
>>T0 For items that are exempt from VAT ie not registered for VAT but the
>>goods value will be shown on VAT Return ie Rates Gardener
>>T1 For items that are Standard Rated ie 17 1/2%
>>T2 For items that are Zero Rated ie Food Postage
>>T3 For items that have special rates ie Electric 5%
>>T9 For items that are outside scope of VAT and do not goods value shown
>>on VAT Return ie Wages Bank Charges etc
>>
>>Hope this helps
>>
>>Martin
>>

>Where did you get your information from?
>
>Sage's default setup for version 10 (and earlier as far as I can
>remember) says:
>
>T0 is for zero rated transactions
>T2 is for exempt transactions
>
>The OP is talking about inputs rather than outputs.
>
>If there is a rate of VAT then include T1 for standard rate or include
>the reduced rate code you have used. Use T0 for everything else (if no
>imports) except the following (taken from
>http://www.hmce.gov.uk/forms/notices....htm#P161_7966 ):
>
>VAT itself;
>wages and salaries;
>PAYE and National Insurance contributions;
>money put into and taken out of the business by you;
>loans, dividends, and gifts of money;
>insurance claims;
>Stock Exchange dealings (unless you are a financial institution);
>MOT certificates;
>motor vehicle licence duty;
>Local Authority rates; and
>income which is outside the scope of VAT because it is not
>consideration for a supply.
>
>I think Martin is wrong about Rates (should be T9 not T0 and Bank
>Charges (should be T0 not T9).
>


If you put bank charges under T0 they will appear as Purchases in the
accounts. They should be T9, as should bank interest received. This
doesn't affect the tax due (which is really all that C&E and Revenue
might prosecute over) but it distorts management accounts.

All bank payments (incoming and outgoing) are T9.

Also I don't think there is the slightest difference between T0 and T2
in the overall accounts, because zero-rated items have the same effect
as exempt items.

AFAIK!

 
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Tim
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      07-15-2004, 10:10 AM
"John-Smith" wrote
> Also I don't think there is the slightest difference
> between T0 and T2 in the overall accounts, because
> zero-rated items have the same effect as exempt items.


How would the system be able to deal with partial-exemption calculations on
inputs, if zero-rated & exempt items are not separated?



 
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Peter Saxton
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      07-15-2004, 10:46 PM
On Thu, 15 Jul 2004 10:07:16 +0100, John-Smith
<no~spam@no~spamno~spam.co.uk> wrote:

>If you put bank charges under T0 they will appear as Purchases in the
>accounts. They should be T9, as should bank interest received. This
>doesn't affect the tax due (which is really all that C&E and Revenue
>might prosecute over) but it distorts management accounts.
>

Bank charges are inputs and if they are T9 they would not appear as
inputs on the VAT return.

>All bank payments (incoming and outgoing) are T9.


Are you serious?
>
>Also I don't think there is the slightest difference between T0 and T2
>in the overall accounts, because zero-rated items have the same effect
>as exempt items.
>
>AFAIK!


I was just correcting the previous error on what was the default
setup.


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