Changing Cashbook VAT Rate to 20%
Article ID: 2024784 Last updated: 24 July 2018
For any sales of standard VAT rated goods or services that you make on or after the 4th of January 2011 you must charge standard VAT at the current rate of 20%.
The change only applies to the standard VAT rate. There are no changes to sales that are zero rated or reduced rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.
NOTE: The following change will only impact new transactions recorded on Cashbook using the newly created VAT code. Existing transactions using the original 17.5% rate will retain their original VAT rate.
Step 1: Change the Standard VAT Rate
1. Click Setup at the top of your screen and select Business Details.
2. In the Business Details window, select the VAT tab.
3. In the VAT Rates dropdown, select 17.5% Standard Rate.
4. Change the rate from 17.5% to 20%.
5. Click the Save Rate button.
6. Click Save at the bottom of the window.
7. Click Close.
Step 2: Change Receipt Code and Payment Code VAT Rates
Once you have set the Standard VAT rate to 20%, you can now set each Receipt Code and Payment Code to the new rate.
1. At the top of your screen, select Setup> Receipt Codes.
2. In the Receipt Codes window, look for any codes that have a Y (yes) setting in the VAT indicator column.
3. Click each Y code in turn and check the selected VAT Rate.
If the VAT Rate field is empty, select the appropriate rate and click Save.
4. Close the Receipt Codes window when you have checked each Y code.
5. Repeat the process for Payment Codes by selecting Setup> Payment Codes.
Disclaimer: This information is of a generic nature. For specific advice regarding your particular circumstances please seek assistance from your Accountant, HM Revenue & Customs or your IT Consultant as appropriate.