Sales tax codes : United Kingdom

For the UK you will most likely require a sales tax code of VAT with 20% for VAT standard, you may need another for VAT with 5% for VAT reduced, and a third for VAT with 0% for VAT zero rate. You should consult your accountant if you are unsure what sales tax categories you require and what the rate should be.

If you are using the VAT Cash Accounting Scheme then you should use the Cash Consolidated Tax Statement as that is based upon receipts and payments, otherwise you would normally use the Accrual Consolidated Tax Statement as that is based upon sales and purchases.

If you are using the VAT Flat Rate Scheme then you can set up bucket calculations to calculate the flat rate percentage that you use for your selected business sector. Firstly set up buckets to calculate the total for your turnover from each of the sales tax codes in the "Buckets For Total Collected". Then set up a bucket calculation to multiply that bucket by the percentage you nominated and place the result into a new bucket. When you run the consolidated tax statement the summary section will then calculate your total turnover and the flat rate percentage amount for that turnover.

These codes and rates were accurate as of the time of writing however they may change and therefore if you are unsure you should contact your accountant or the HM Revenue & Customs.

Add UK Sales Taxes Option Menu

You can set up a default set of sales tax codes for the UK from the sales tax codes screen by selecting "Add UK Tax Codes" from the option menu. You can then adjust them as required before using them.