Depending on your business's eligibility, you would have to set up the relevant VAT scheme in Clear Books for HMRC tax purposes (if applicable). The VAT scheme helps determine how the VAT return searches for invoices and how VAT is calculated on each invoice and bill.

It is extremely important that you set up the correct scheme before adding invoices and bills when either starting Clear Books for the first time or when switching scheme part way through a year.

Step 1.

Navigate to Settings > Organisation > Details & Tax.

Step 2.

Click on the Tax tab on the box to the left and hit the Manage VAT schemes link. 

Step 3.

Fill in the details of the VAT scheme. Leave the Date To field blank if the current scheme is still active. Hit the Add button to complete. When changing scheme create the new scheme as above and when saved the previous scheme will be closed automatically. When a VAT registration ends for good, enter the appropriate date in the Date To box and hit the Update button. A closed VAT scheme must always have a date in the Date To box.

If any VAT schemes have been added incorrectly, to update the scheme click on the delete icon and re-add the correct scheme.

Please note: It is extremely important that the correct VAT scheme is added when starting Clear Books, and updated as soon as there are any changes. If invoices with VAT are created on the wrong scheme they will need to be voided and re-created under a changed scheme.

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