T0 or T9

Discussion in 'UK Accountancy' started by Dan, Jul 13, 2004.

  1. Dan

    Dan Guest

    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.
     
    Dan, Jul 13, 2004
    #1
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  2. Dan

    Peter Saxton Guest

    On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <>
    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?


    --
    Peter Saxton from London
     
    Peter Saxton, Jul 14, 2004
    #2
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  3. Dan

    Dave Guest

    In article <>,
    says...
    > On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <>
    > 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....
     
    Dave, Jul 14, 2004
    #3
  4. 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" <> wrote in message
    news:...
    > In article <>,
    > says...
    > > On Tue, 13 Jul 2004 23:33:31 +0100, "Dan" <>
    > > 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, Jul 14, 2004
    #4
  5. Dan

    Peter Saxton Guest

    On Wed, 14 Jul 2004 21:08:43 +0100, "Martin Thomas"
    <> 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/700-12.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).



    --
    Peter Saxton from London
     
    Peter Saxton, Jul 15, 2004
    #5
  6. Dan

    John-Smith Guest

    Peter Saxton <> wrote:

    >On Wed, 14 Jul 2004 21:08:43 +0100, "Martin Thomas"
    ><> 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/700-12.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!
     
    John-Smith, Jul 15, 2004
    #6
  7. Dan

    Tim Guest

    "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?
     
    Tim, Jul 15, 2004
    #7
  8. Dan

    Peter Saxton Guest

    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.


    --
    Peter Saxton from London
     
    Peter Saxton, Jul 15, 2004
    #8
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