A note about software

More

Firstly and most importantly, an upgrade to the software was issued on 17 December 2010. Please ensure that you have downloaded this upgrade before running any VAT returns later than 30 November 2010.

If you use the money in and money out pages to record the figures for your VAT returns, for the first few months of 2011 you will be receiving money in respect of sales invoices issued before 4th January 2011 and as you enter each receipt into your records you will need to check whether the original invoice charged VAT at 17.5% or 20%. If the original invoice was at 17.5% you should account for VAT on the receipt at 17.5% notwithstanding the fact that you received this money after 4 January 2011 2011.

More works on the receipt/payment date and doesn't hold any details of the original invoice date, so you will need to check this and change it manually.

If you are using the flat rate scheme it is essential that you send the file back to us so that we can change the flat rate percentage being used. Please complete your More file up to 3 January 2011; lock the file and e-mail it to us. We will update the percentage and send the file back to you to continue your bookkeeping for January onwards.

When you prepare your next VAT return, it will be necessary to do this in two parts. The first part will be up to 3rd January 2011 and the second part will be for the balance of the VAT return period. You will need to print out to separate sets of VAT figures for each period and add them together to give the figures for the VAT quarter.

Other packages

If you are using another proprietary package such as Stage, QuickBooks, VT Software et cetera you will need to follow the instructions provided by the package supplier.

Spreadsheets

If you keep your accounting records on spreadsheets it will be up to you to change the necessary formulae to reflect the VAT changes.

Please note that HMRC do not regard the keeping of bookkeeping records on spreadsheets as "taking reasonable care". This means that, in the event of an error arising due to a fault in the spreadsheet, HMRC would expect to impose penalties because they will view you as not having taken reasonable care.

We would strongly urge you to use a proprietary accounting package to avoid this risk, and will be happy to help you select one appropriate to your particular requirements.