On Tue, 20 Dec 2022 at 09:43, Maf. King <m...@chilwell.net> wrote: > Morning Dave. > > I think the answer to this depends on the question "are you planning to > register for VAT?", and also falls squarely in the category of "ask your > accountant for his opinion on how to do this" >
Unfortunately turnover is not going to force me to need to register😢😢😢, but it might make sense to. Currently 90% of what I buy has VAT on it, but only 10% of what I produce goes to the UK. However, the other reason for me wanting to separate out the VAT now is that it makes creating bills much easier. The main suppliers I purchase from (RS, Farnell, Mouser) only list ex-VAT prices. So it’s much easier to use the ex-VAT prices and have GnuCash calculate the VAT. As a test, I set up a new set of accounts from GnuCash, selecting the UK VAT model. I didn’t find them particularly intuitive, not helped by the fact that the instead of the usual accounts Assets, Expenses, Liabilities. Equity & Income another top-level of accounts is produced for VAT, so one has 6 categories, not the usual 5. I will have another look, but they seemed confusing to me, with reference to box 4 or similar. This video on YouTube https://youtu.be/rd76CTl1rXQ looks potentially interesting. This post https://lists.gnucash.org/pipermail/gnucash-user/2003-July/007526.html probably explains what these boxes are. > > If you are planning to register, then you might as well start your books > with > that goal in mind and have the appropriate VAT collection accounts in your > tree from day 1. Unfortunately I have just input a month’s transactions into GnuCash. All them will need to be entered again 😢😢😢😢 Fortunately I am a lot quicker now at entering the transactions than I used to be, so it will not be such a pain. Customer and vendor lists will be easy to just copy/paste. I think I will start again with the information needed for handling VAT. If you are not registering, then either: > > you don't record the VAT portion independently of the stock, and it just > costs > 20% "more" ( i think this is what your accountant will say) It would be a real pain for me creating bills though. > Conceptually I think you are mixing two models: either the cost of VAT is > the > cost of VAT and the cost of stock is net, or the cost of stock is gross > and > you have no cost of VAT.... you can't really mix the 2 models and expect > accurate or easy answers.... Yes, I think you are right. Fortunately I realised the problem before entering in too much data. > > You *could* mirror your expenses tree into a VAT branch too... > Expenses: > Stock > Office > VAT > Stock > Office > etc. > but that seems like pain for little gain! > > HTH, > Maf. Dave > > -- Dr. David Kirkby, Kirkby Microwave Ltd, drkir...@kirkbymicrowave.co.uk https://www.kirkbymicrowave.co.uk/ Telephone 01621-680100./ +44 1621 680100 Registered in England & Wales, company number 08914892. Registered office: Stokes Hall Lodge, Burnham Rd, Althorne, Chelmsford, Essex, CM3 6DT, United Kingdom _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
