Important Changes to VAT from 1st January 2011

You are no doubt already aware that the standard rate of VAT will increase to 20 per cent on 4 January 2011. Zero rated supplies, such as basic foodstuffs, children’s clothing and books; exempt supplies, such as education and health; and supplies subject to VAT at the reduced 5 per cent rate, such as domestic fuel and power, are not affected by this change.
In order to comply you will need to make some manual changes to your software. Please click on the appropriate link below for detailed instructions

To change the VAT rate in Sage Accounts 2011

To change the VAT rate in Sage Accounts 2010 and earlier

To change the VAT rate in Sage Accounts 2011

To change the standard rate of VAT in Sage Accounts, you should edit the standard rate tax code, T1 by default.

Note: You should make this change on 4 January 2011.

Open the Settings menu, choose Configuration then click the Tax Codes tab.
The tax code information appears.
Select T1 then click Edit.
Note: If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit.
The Edit Tax Code window appears.
In the Rate box, enter 20 then click OK.
The Edit Tax Codes window closes.
To apply the change and return to the Sage Accounts desktop, click Apply then click Close.
Tip: If you are prompted to save your changes, click No.
You have successfully changed the standard rate of VAT.
Sage Accounts applies the new rate of VAT to any new transactions that use this tax code. All existing transactions remain unchanged at the old rate of VAT. If you have any memorised or recurring entries, you must update the VAT rate before posting.

To change the VAT rate in Sage Accounts 2010 or earlier

To change the standard rate of VAT in Sage Accounts, you should edit the standard rate tax code, T1 by default.

Note: You should make this change on 4 January 2011.

Open the Settings menu, choose Configuration then click the Tax Codes tab.
The tax code information appears.
Select T1 then click Edit.
Note: If you use a different tax code for your standard rate of VAT, select the relevant tax code then click Edit.
The Edit Tax Code window appears.
In the Rate box, enter 20 then click OK.
The Edit Tax Codes window closes.
To apply the change and return to the Sage Accounts desktop, click Apply then click Close.
Tip: If you are prompted to save your changes, click No.
You have successfully changed the standard rate of VAT.

Sage Accounts applies the new rate of VAT to any new transactions that use this tax code. All existing transactions remain unchanged at the old rate of VAT. If you have any memorised or recurring entries, you must update the VAT rate before posting.