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Jack Wallace

  • Posts: 625
George and VAT
« on: October 29, 2010, 07:43:36 am »
I have been using George for years with very few problems but this time I can’t see a way to do what I want with it.

I had to register for VAT recently, (it starts from dec 1st)

I don’t see how I can pass it onto my residential customers as I think they will mostly tell me to take a hike, but will be doing so with commercial.

However if I "tick the box" in George it will add VAT to all my jobs.

Anyone had this problem and if so how did you get around it?

I am not sure if roundtracker or wcp can deal with it either but may have to consider swapping if they do.

Chris Cottrell

  • Posts: 3162
Re: George and VAT
« Reply #1 on: October 29, 2010, 08:10:45 am »
Jack with George its all or nothing i'm afraid, wcp however you can select each customer that you want vatable

Re: George and VAT
« Reply #2 on: October 29, 2010, 09:45:26 am »
what vat rate have u signed uo for   10% or 17.50 %   as  u will end up paying it on ur domestic custys anyway, 

Jack Wallace

  • Posts: 625
Re: George and VAT
« Reply #3 on: October 29, 2010, 11:46:17 am »
what vat rate have u signed uo for   10% or 17.50 %   as  u will end up paying it on ur domestic custys anyway, 

10.5% 
I realise I will pay it for domestics but will just have to swallow that. I will target commercial more now as I will charge them the full 17.5% yet pay the 10.5% so will make a bit there.


M Henderson

Re: George and VAT
« Reply #4 on: October 29, 2010, 11:55:18 pm »
Jack,

From what I understand the domestic customers are still paying VAT (as far as your books goes) but in reality you will be swallowing that and effectively paying it for them because you don't want to raise their prices. Is that right?

It sounds like you should just reduce the price of the domestic customers in George so that the total figure with VAT is the same as they are paying now.

However, the maths isn't that straightforward:  :'(

For ease of figures lets say you have a nice domestic job that is £100  8)    and you want to reduce the figure in George so that when 10.5% VAT is added it is still £100....

You can't just minus 10.5% because the VAT will then be added to the £89.50 and 10.5 % of £89.50 isn't £10.5.

What you do is stick a 1 before the vat rate and move the decimal left a couple of places and then divide the customer price by that.  ???  :o

eg. Customer price is £20
divided by 1.105 = 18.0995475 (£18.10)

£18.0995475 * 10.5% = 1.90045244 (£1.90)

£18.10 + VAT of £1.90 = Original price of £20  ;)

Therefore the new customer price to enter is £18.10


You could go through this on all your customers and change the prices but it would take a while to do.

The good thing with Excel  is that you can easily tweak the program to adapt it to what you want to do. - This is a service we offer. (Round Tracker v4 PRO uses Excel combined with VBA coding- so it is more than just a fancy spreadsheet. - Previous versions of Round Tracker did not use VBA coding)

In your case the tweak would likely involve setting it up so that you would enter the £20 price in an 'agreed price'  column and the £18.10 would appear automatically in the Price column as used for your accounts etc.

The only tricky bit is the fact that you have two different VAT rates going on. You would therefore need another tweak whereby the job would be labelled Commercial or Domestic and the VAT rate would be applied accordingly.




Re: George and VAT
« Reply #5 on: October 30, 2010, 12:47:42 pm »
Jack,

I take it you are on flat rate scheme?

What I did was add 17.5% to all commercial accounts prices, then tick job prices to include VAT on George!

Regards

Simon


George Systems

  • Posts: 391
Re: George and VAT
« Reply #6 on: November 03, 2010, 04:25:26 pm »
Hi

George can either add VAT to the price or assume the price already includes VAT - but that setting applies to all your Jobs so you will need to increase the price of your commercial jobs to take that into account.

Paul Sanders
GeorgeSystems

Helen

Re: George and VAT New
« Reply #7 on: November 03, 2010, 05:47:25 pm »
Jack,

From what I understand the domestic customers are still paying VAT (as far as your books goes) but in reality you will be swallowing that and effectively paying it for them because you don't want to raise their prices. Is that right?

It sounds like you should just reduce the price of the domestic customers in George so that the total figure with VAT is the same as they are paying now.

However, the maths isn't that straightforward:  :'(

For ease of figures lets say you have a nice domestic job that is £100  8)    and you want to reduce the figure in George so that when 10.5% VAT is added it is still £100....

Wrong This a straightforward flat rate scheme
10.5% is the percentage you pay to HMRC.
You charge out 17.5% to the custie (20% from Jan 4th 2011)

If you don't want to increase your domestic prices then a £100.00 job will be come £85.11 nett of vat = £100 diviided by 1.175
You then pay 10.5%  of the gross figure (£100) to HMRC = £10.50, therefore making £4.39 for yourself on top of the £85.11



You can't just minus 10.5% because the VAT will then be added to the £89.50 and 10.5 % of £89.50 isn't £10.5.

What you do is stick a 1 before the vat rate and move the decimal left a couple of places and then divide the customer price by that.  ???  :o

eg. Customer price is £20
divided by 1.105 = 18.0995475 (£18.10)

£18.0995475 * 10.5% = 1.90045244 (£1.90)

£18.10 + VAT of £1.90 = Original price of £20  ;)

Therefore the new customer price to enter is £18.10

No it's not

You could go through this on all your customers and change the prices but it would take a while to do.

The good thing with Excel  is that you can easily tweak the program to adapt it to what you want to do. - This is a service we offer. (Round Tracker v4 PRO uses Excel combined with VBA coding- so it is more than just a fancy spreadsheet. - Previous versions of Round Tracker did not use VBA coding)

In your case the tweak would likely involve setting it up so that you would enter the £20 price in an 'agreed price'  column and the £18.10 would appear automatically in the Price column as used for your accounts etc.

The only tricky bit is the fact that you have two different VAT rates going on.
Sorry that is wrong

You would therefore need another tweak whereby the job would be labelled Commercial or Domestic and the VAT rate would be applied accordingly.
Absolutely not.
Vatable services at standard rates are charged out at 17.5% to ALL customers, there is NO other level just because they are domestic.
All nett prices are subject to the 17.5% whether you add it on or swallow it yourself. As said before the 10.5% flat rate is 10.5% of the gross figure and this amount is paid to HMRC


Jack I am sure you know the ins an outs or you wouldn't be entering into this. Vat on the HMRC site is easily followable, or if not speak to you accountant.

"2 rates of vat going on" ??? ??? Mr Henderson are you vat registered? do you know how the flat rate works?