Sage and VAT Accounting Scheme

[bdcbdc]

Hi... Apologies if this has been answered elsewhere but a quick look didn't find anything...
I am new to Accounting, running a business, VAT, Sage and this forum so please go easy on me!
Our business is retail - both online and from premises. As I hope to go over the VAT threshold I have registered immediately. So my question is which VAT scheme should I select in SAGE Instant Accounting Plus?
Thanks in advance
Regards
bdcbdc

 

[johndon68]

It depends...

You can use VAT Cash Accounting if your estimated VAT taxable turnover during the next tax year is not more than £1.35 million otherwise you'd select Standard VAT Accounting.

Then, of course, there is also the Flat Rate Scheme...

If you are unsure I'd suggesting asking your accountant.

John

 

[danielrobert48]

Use VAT Cash Accounting if you have not more taxable turnover? For more true picture of your turnover consult with your accountant and decide it.

 

[Caspar]

In my opinion Cash accounting is used when someone has to wait ages to be paid, such as a builder who may wait 90 days before he receives payment as an example. If your retail business generally receives payment as goods are released then I believe you would use standard vat accounting.

 

[Scalloway]

Cash accounting for VAT is not a good option for retail. As Caspar has noted you will pay over VAT on your sales almost right away, but you will only be able to reclaim VAT when you pay your suppliers.

I would look at Flat Rate VAT.