Sage 50: Knowing Your U.K. Tax Codes - dummies

By Jane E. Kelly

Part of Sage 50 Accounts For Dummies Cheat Sheet

Even if you don’t need to use all the tax codes all the time to prepare accounts on Sage 50, you probably need some of them sometimes. For those times:

  • T0: Zero-rated. VAT is not payable on zero-rated supplies. Examples of this include books, children’s clothes and some items of food.

  • T1: Standard rate. Currently 20 per cent.

  • T2: Exempt from VAT. For example, insurance and financial services.

  • T4: Sales of goods to VAT registered customers in the European Community (EC).

  • T5: Lower-rate VAT, usually 5 per cent. Applies to the purchase of energy-saving materials and, for example, reclaiming VAT on DIY building work.

  • T7: Zero-rated purchases of goods from suppliers in the EC.

  • T8: Standard-rated purchases of goods from suppliers in the EC.

  • T9: Transactions not involving VAT. For example, wages.

  • T20: Sales and purchases of reverse charges.
  • T22: Sales of services to VAT registered customers in the EC.
  • T23: Zero-rated purchases of services from suppliers in the EC.
  • T24: Standard-rated purchases of services from suppliers in the EC.
  • T25: Flat rate accounting scheme, purchase and sale of individual capital items > £2,000.