I have recently started using Quickfile and I think it is great, for a company that is not registered for vat .
I was looking to start using it for a vat registered company, but notice on entering an invoice there is a choice of 20%, 5% and No Vat. I presume the No Vat invoices are entered on the vat return, as I usually enter wages, interest received etc. which should not go on the return, as an invoice, I am now in trouble. How do I handle invoices that I would normally allocate to T9 in Sage.
Happy enough that Zero and Exempt are “No Vat” presuming, as there is no other choice, that is ok with HMRC Vat.
Please can you advise. John
Hi @jm23bg
Wages should be entered as a journal and bank payment within QuickFile rather than an invoice. Journals aren’t taken into account with VAT returns.
You may find this guide helpful:
Recording payroll
ZERO, exempt and NO VAT are not one and same thing. Payroll data is best incorporated via journals in any software including sage
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I realise Zero Exempt and No Vat are not one of the same thing and why I have raised the query. So are you saying all “Outside Scope of Vat” including the likes of interest etc are done by nominal journals?
For interest , you can just tag them direct from bank, no need of journal as such
Not necessarily. Each client and supplier has an option to enable out of scope and exempt option:
This reveals options as part of the invoices which depend on the settings of the client or supplier.
As @FaradayKeynes mentions, things such as interest can be tagged straight from the bank itself. See here for more details.
Wages I do with journals, then the actual payments to employees, HMRC and any pension funds are directly tagged to the balance sheet nominal codes using “something not on this list”.
Interest I tag in the same way, with “something not on this list”.
As far as I can tell from the HMRC guidance pretty much everything else should be counted in box 7 on your return, including VAT-exempt purchases (NB I’m not an accountant, @FaradayKeynes is)