TAS software - Making business easy

Get as up-to-date as you can

Process and post any outstanding invoices, speak to your suppliers and get their invoices before 31 December 2009 and allocate any cash on account. This will make the whole changeover process as easy as possible, and help you clearly see which items relate to the old rate and which to the new.

Take a backup

From the Company Manager window, select your company and take a backup.  If you're not sure how to take a backup, full details are in your program helpfile and user guide.

Check your existing VAT rates

You may already have a 17.5% VAT rate set up. If you don't have a 17.5% VAT rate, you'll need to create a new one.

1. From the TASBooks menu bar, select Central > VAT Rates and Reporting > Maintain VAT Rates (option 031).
2. Check to see if you already have a 17.5% Rate, for example rate 1.

• If you do have a 17.5% VAT rate:

3. In the VAT Calculation Defaults section, select the Default Standard Rate as the 17.5% Standard rate; for example, rate 1.
4. To accept the new rate, click Save.

• If you don't have a 17.5% VAT rate, you'll need to create one:

In the VAT Rates list, scroll down to the next available rate, for example, rate 6. Complete the rate as follows:


Rate	Acct	Dept	NL Description	Short Description	Rate Type
6	2300	100	VAT Control A/c	17.5%  Standard Rate	Standard


3. In the VAT Calculation Defaults section, select the Default Standard Rate as the your 17.5% Standard rate; for example, rate 6.
4. To accept the new rate, click Save.

Set your 17.5% VAT rate as the default rate

1. To ensure the new VAT rate is used by default when you create new products, from the menu bar select Central > General Company Information > TASBooks Configuration (option 012, or option 011 in some older programs).
2. In the left-hand pane select Default Settings and in the right-hand pane scroll down to the Product section.
3. Under the Product section select VAT rate, and from the drop-down list, select the 17.5% VAT rate.
4. Click OK then click Yes to save the entry.

Update your product records

You'll need to update your product records so that they use the 17.5% Standard Rate. You'll also need to consider the effect on your selling prices - particularly if you use Retail VAT-inclusive pricing. The way you do this will depend on how many product records you have and the version of TASBooks that you are using. It's a good idea to print a product price list before you start, you can do this by selecting Products > Products / Services Reporting > Print Price List (option 532). 

• If you have TASBooks v1 (or TAS BOOKS v8.04) you can change the VAT rate in all of your product records in one go. You'll also be able to amend your Retail VAT-inclusive pricing.
  
  Note: To run this option, login to TASBooks as Supervisor (SPV).

1. Select Products > Utilities > Change Product VAT Rate (option 584).
2. Ensure the 15% VAT Standard Rate appears in the Current VAT Rate box, and the 17.5% VAT Standard Rate appears in the New VAT Rate box.
3. If you use Retail VAT-inclusive pricing, select the Recalculate Selling Prices check box, then choose from the following options.
4. If you don't currently use Retail VAT-inclusive pricing, we recommend you select Recalculate Selling prices and choose the first option below. This ensures that if you do decide to use Retail VAT-inclusive pricing in the future, your selling prices will all be correct.
   
   Note: The option names are taken from the first price of the Standard pricing section of the product record, this is normally your Retail (Ex VAT) price, but the name may be different on your system.
   
   

   Recalculate Retail from Retail (Ex VAT)

   Select this option to recalculate your Retail VAT-inclusive selling price based on the new rate of VAT, using the first price in the Standard Pricing section of the product record. This is normally your Retail (Ex VAT) price. This means your Retail VAT-inclusive price will go up by the amount of the VAT increase. For example; if your Retail price is £29.35 and the Net price is £25.52, after using this option the Retail price will increase to £29.99, with the Net price staying the same at £25.52.

   Recalculate Retail (Ex VAT) from Retail

   Select this option to recalculate the first price of the Standard Pricing section in the product record - this is normally your Retail (Ex VAT) price - based on your existing Retail VAT-inclusive price.  This means that your Retail VAT-inclusive prices will not change. For example; if your Retail price is £29.99 and your Net price is £26.08, after using this option the Retail price will not change, but your Net price will decrease to £25.52.

   
   Note: All changes to VAT rates and selling prices will be shown on your System Audit log.
   
3. To change the VAT rate and selling prices on products, click Change Rate.
4. To confirm the change, click Yes and then click OK.

• If you only have a few product records, or you are using TAS BOOKS v7 and earlier versions, you can edit each individual product record to amend the VAT Rate.

1. From the TAS BOOKS menu bar select Products > Products and Services > Maintain Products and Services (option 511).
2. Press F2, and select the product Code from the lookup list.
3. In the VAT Rate drop-down box, select the 17.5% VAT rate.
   
   Note: You'll need to consider how you want to deal with any changes to product pricing, particularly if you use Retail VAT-inclusive pricing.  If you want to amend your prices, you can manually amend your product records.
   
4. When you've made all of the changes you need to this record, click Save.
5. Repeat this process for each of your products where standard rate VAT applies.

You've now changed the VAT rate on your standard-rated products. You should now print a price list by selecting Products > Products / Services Reporting > Print Price List (option 532).

Consider open Sales Orders

The above process won't alter the VAT on any open Sales Orders. You'll need to consider whether these should remain at 15% or whether the 17.5% rate applies. If you are unsure which rate applies to your Sales Orders, visit the HMRC website.

If you need to amend the VAT rate on unposted Sales Orders, from the menu bar select Sales Orders > Sales Orders > Enter / Change Sales Orders / Credit Notes (option 611). Select the relevant Sales Order, and enter the correct VAT rate, for example, rate 1 and re-save the Sales Order.

Check recurring entries

If you have recurring entries, such as invoices or journals, you'll need to ensure the correct VAT rate is applied to these entries.

1. To check or edit a recurring sales invoice, journal or customer receipt, from the menu bar select Sales > Enter / Change Journals > Recurring Sales Invoices / Journals / Customer Receipts (option 223).
   
   To check or edit a recurring purchase invoices, journal or supplier payment, from the menu bar select Purchase > Enter / Change Journals > Recurring Purchase Invoice / Journals / Supplier Payments (option 323).
   
   To check or edit recurring sales orders, from the menu bar select Sales Orders > Sales Orders > Recurring Sales Orders (option 614).
   
2. To amend the VAT rate on an entry, select it in the list and click Edit.
3. In the VAT Amount box, delete the amount displayed then change the VAT rate to the new rate, for example 1, then press TAB.  The new VAT amount is then calculated. 
   
   Note: The VAT amount won't recalculate unless you delete the VAT amount displayed before you change to the new rate.
   
4. Save the recurring enter and edit any further entries required.

Need more advice?

We've added answers to some of the most common questions about the VAT changes.

If you have a TAS support plan, you can contact our Software Support team on 0800 694 0220 if you need any help on making the changes in your TAS program.

If you haven't got TAS support plan, there's never been a better time to take one out. And to make it even easier, you may be able to spread the cost with interest-free direct debit payments. Call your TAS Account Manager on 0800 694 0220 for full details.

Get as up to date as you can

Process and post any outstanding invoices, speak to your suppliers and get their invoices before 31 December and allocate any cash on account. This will make the whole changeover process as easy as possible, and help you clearly see which items relate to the old rate and which to the new.

Take a backup

From FirstPage, select your company and take a backup (in TAS BOOKS 1, from the program menu bar select File > Backup). If you're not sure how to take a backup, full details are in your program helpfile and user guide.

Check your existing VAT rates

You may already have a 17.5% VAT rate set up. If you don't have a 17.5% VAT rate, you'll need to create a new one

1. From the program menu bar, select Company > VAT > Setup VAT Rates (in TAS BOOKS 1, select VAT > Setup VAT Rates).
2. Check to see if you already have a 17.5% Rate, for example rate 1.

• If you do have a 17.5% VAT rate, you can just click Close.

• If you don't have a 17.5% VAT rate, you'll need to create one:

3. In the list of rates, select the next available rate, for example, rate 6 then click Edit.
4. Complete the rates as follows:
   
   

   Rate	Description	VAT Rate
   6	17.5% Standard Rate	17.5%

   
   
5. To accept the new rate, Close.

Set your 17.5% VAT rate as the default rate

1. To set the 17.5% rate as your default, from the program menu bar select Company > Company Information (in TAS BOOKS 1, select Preferences > Company Information and click the VAT Scheme tab).
2. In the left-hand pane select VAT and Scheme Selection (in TAS Books 1, click the VAT Scheme tab).
3. In the Default Standard Rate drop-down list, select 17.5% Standard Rate.
4. To accept the new default rate, click OK.

Update your product records

You'll need to update your product records so that they use the new 17.5% VAT Standard Rate. The way you do this will depend on how many product records you have and the version of TAS that you are using. It's a good idea to print a product price list before you start, you can do this by selecting Products > Reports > Price List.

• If you have FirstBooks or TAS BOOKS 1 v8.03 you can change the VAT rate in all of your product records in one go. Select File > Utilities > Change Product VAT Rate.

1. Ensure 15% VAT Standard Rate appears in the Current VAT Rate box, and 17.5% VAT Standard Rate appears in the New VAT Rate box.
2. If you use Retail VAT-inclusive pricing, select the Recalculate Selling Prices check box, then choose from the following options.
3. If you don't currently use Retail VAT-inclusive pricing, we recommend you select Recalculate Selling prices and choose the first option below. This ensures that if you do decide to use Retail VAT-inclusive pricing in the future, your selling prices will all be correct.
   
   
   

   Recalculate Retail from Net	Select this option to recalculate your Retail price based on the new rate of VAT, using the Net price in the product record. This means your Retail price will be go up by the amount of the VAT increase. For example; if your Retail price is £29.35 and the Net price is £25.52, after using this option the Retail price will increase to £29.99, with the Net price staying the same at £25.52.
   Recalculate Net from Retail	Select this option to recalculate your Net price based on the new rate of VAT, using the existing Retail price in the product record. This means your Retail price will not change. For example; if your Retail price is £29.99 and your Net price is £26.08, after using this option the Retail price will not change, but your Net price will decrease to £25.52.

   
   
3. To change the VAT rate and selling prices on products, click Change Rate.
4. To confirm the change, click Yes and then click OK
   
5. To change the VAT rate on products click Change Rate.

• If you only have a few product records, or you are using TAS BOOKS 1 v7 or earlier versions, you can edit each individual product record to amend the VAT Rate.

1. From the program menu bar select Products > Enter / Enquire on Products / Services.
2. Press F2, and select the product code from the lookup list.
3. In the VAT Rate drop-down box, select the 17.5% VAT rate.
   
   Note: You'll need to consider how you want to deal with any changes to product pricing, particularly if you use retail pricing.  If you want to amend your prices, you can manually amend your product records.
   
4. When you've made all of the changes you need to this record, click Save.
5. Repeat this process for each of your products where standard rate VAT applies.

You've now changed the VAT rate of your standard rated products.  You should now print a price list by selecting Products > Reports > Price List.

Check your Flat Rate VAT details

Note: This section anly applies if you are on the Flat Rate VAT scheme.

1. From the program menu bar, select Company > VAT > Setup VAT Rates (in TAS BOOKS 1, select VAT > Setup VAT Rates).
2. Check to see if you already have a 17.5% Capital Asset rate, for example rate 7.

• If you do have a 17.5% Capital Asset rate, you can just click Close.

• If you don't have a 17.5% Caital Asset rate, you'll need to create one:

1. From the menu bar select VAT > Setup VAT Rates.
2. In the list of rates, select the next available rate, this will probably be rate 8, and click Edit.
3. Complete the rate as follows:
   
   

   Rate	Description	VAT Rate
   8	17.5% Capital Asset	17.5%

   
   
4. To accept the new rate, click OK and then click Close.

• Change the Capital Asset rate applied and add a new flat rate line

1. From the menu bar select Company > Company Information (in TAS BOOKS 1, select Preferences > Company Information).
2. In the left-hand pane select VAT and Flat Rate VAT (in TAS BOOKS 1, click the Flat Rate VAT tab).
3. In the VAT Rate for Assets drop-down box, select the 17.5% Capital Asset rate, for example, rate 7.
4. To add a new flat rate vat line, click Add.
5. In the VAT Rate box, enter the rate of VAT applicable to your industry sector. For information about the rate which applies to your business, visit the HMRC webite
6. In the Effective from box, enter 01/01/2010 then to accept the new flat rate VAT line, click Save.

You've now applied the changes to Flat Rate VAT effective from 1 January 2010.

Consider open Sales Orders

The above process won't alter the VAT on any open Sales Orders. You'll need to consider whether these should remain at 15% or whether the 17.5% rate applies. If you are unsure which rate applies to your Sales Orders, visit the HMRC website.

If you need to amend the VAT rate on unposted Sales Orders, from the menu bar select Invoicing > Enter / Enquire on Sales Orders. Select the relevant Sales Order, and enter the correct VAT rate, for example, rate 1 and re-save the Sales Order.