VAT wasn’t mentioned during the Autumn budget back in October. This means that for the 2022/2023 tax year the following will apply for VAT;
- Rates will remain the same
- The VAT threshold will remain the same
The current VAT rates of 20% for the standard VAT rate, 5% for the reduced rate and 0% on zero-rated supplies will still be in effect for the next tax year.
The VAT threshold is currently at £85,000 and will remain the same for the next tax year. This also means that the deregistration threshold will also stay as it is at £83,000. During the Spring budget of 2021 Rishi Sunak confirmed that this would be the case until the end of March 2024.
The reduced VAT rate for hospitality and tourism which came into effect from October 2021 for eligible businesses that were impacted due to coronavirus will come to an end from 1st April 2022. You can read our blog about to find out more here.
What tax codes do I use in my Sage 50 Software?
You may be asking yourself what Sage tax code you use for the various rates.
- The default tax code for the standard VAT rate of 20% is T1
- The tax code for the reduced rate at 5% is T5
- For Zero rated VAT you use T0
We have put together a Sage 50 tax code guide which you can refer to in order to help you with all tax codes within your Sage software. You can download it here.
For any questions you have relating to tax codes in your Sage 50 software you can always pop them into our Sage 50 Users Support Communities on Facebook. There’s always someone there to offer you advice and a helping hand!
“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”