VAT settings and schemes

Setting up VAT

1. Open VAT settings

   On the client's VAT tab press "VAT settings".

2. Choose the scheme

   Standard (VAT by invoice date), cash accounting (VAT when paid, VAT Notice 731) or the flat rate scheme (VAT Notice 733).

3. Choose how often

   Quarterly, monthly or the annual accounting scheme, and for quarterly returns which months the quarters end.

4. Add the dates

   Enter the effective date of registration.

5. Save

   Press "Save VAT settings".

Flat rate clients

Enter the flat rate percentage for the client's trade sector. Choose whether to test every return for the limited cost business rate of 16.5%, and tick the purchase accounts that hold relevant goods for the test. The first-year 1% reduction is applied, and capital goods of £2,000 or more are claimed in box 4. See the limited cost trader rules.

Annual accounting and Northern Ireland

Annual accounting takes the month the year ends, nine monthly or three quarterly advance payments, and the estimated VAT for the year. Tick "Moves goods between Northern Ireland and the EU" to use boxes 2, 8 and 9.