If you are VAT registered then you will use this feature to calculate your VAT returns which are to be submitted to HMRC. If you specified that your business was not VAT registered on the initial wizard then this feature will not be visible to you in the software.
From the VAT return section, you can create a new return to calculate your VAT as well as change your VAT scheme.
To calculate a VAT return click ‘Add New VAT Return’ and enter the date range for the VAT return you wish to calculate. You will then be presented with the figures, which you can check if you wish.
If you’re happy that your data is correct, you can lock the return which will prevent any of the transactions included from being edited/deleted unless the return is later unlocked.
When a VAT return is locked, the amount of VAT due will be transferred to the correct category, ready for when you record your payment to HMRC in the Banking tab. You will also be able to export a full breakdown of the return in CSV or PDF format.
To change VAT schemes simply click ‘VAT Schemes’ and enter the date ranges for the schemes you were on. The software can handle the switch between schemes and between invoice based/cash based accounting for you. This means you don't need to worry about your data being incorrect when switching. It will also automatically handle your 12 months 1% discount and reclaiming VAT on assets over £2,000 if you are on the flat rate scheme.
EC Sales lists are also available if you sell goods/services to European customers who are VAT registered in their country.