UK company VAT account structure, updated

[Derek Atkins]

May I make a suggestion:  build this into a .gnucash-xea file
and submit it for inclusion in the New File Hierarchy?

-derek

Vincent V <vincentv at dsl.pipex.com> writes:

> This is an updated strucure for UK VAT accounts taking into account
> the feedback that I have recieved and the omissions and lack of
> clarity that I spotted. I believe it provides all the information
> required but I am not a VAT or Tax expert so treat it with caution and
> check that meets your needs.
> 
> Vince
> 
> Account types (only shown if different to parent type)
> [E] Expence
> [I] Income
> [A] Asset
> [L] Liability
> [Q] Equity
> [B] Bank accounts
> [C] Credit Cards
> [R] Accouns Receivable
> [P] Accouns Payable
> 
> (Box n) refers to VAT form box number (I actually have these as
> descriptions to the account to remind me)
> 
> Add all the (Box n -part)  together to get the whole (Box n)
> The VAT shows you liability - if its negative they owe you.
> 
> Capital Equipment (Box 7 - part) and (Box 6 - part) is the value of
> all *additions* (purcahses) made over the VAT return period - not the
> absolute value, nor the difference in value unless that difference is
> wholey due to new purchases. Depreciation, losses (e.g a write off of
> faultly item) and other reductions in capital value are not
> included. If you sell a capital item then that sale and its VAT is
> recorded under Income. The asset is 'converted to cash', so the 'net
> of VAT' increase in your bank account, when the invoice is payed, is
> matched by a decrease in capital.
> 
> Bank Accounts [B]
>    |___ Main Account
>    |___  Reserve Account
> 
> Cash [A]
> 
> Assets [A]
>    |___ Capital Equipment    (Box 7 - Part) - additions only, not absolute value
>    |           |___ Computers      Can be depreiciated to zero this year
>    |           |___ EEC reverse VAT purchase  (Box 6 - Part) create subaccounts if needed
>    |___  Other
> 
> Recievable [R] Customers to whom you give credit - (business section)
> 
> 
> Cards [C]
>    |___  Card 1
> 
> Liabilities [L]
>    |___  Owed Corp Tax
>    |___  Owed Fees
>    |___  Owed Tax / NI
>    |___  Other
> 
> VAT [L]   Net (Box 5)
>    |___ i/p [A]   purchases (Box4)
>    |___  o/p [L]     (Box3)
>               |___EEC   on reverse VAT purchases (Box 2)
>               |___Sales   all including zero rate UK/ EEC  and World (Box1)
> 
> Payable [P]   Suppliers who give you credit (business section)
> 
> Equity [Q]
>    |___  Corp Tax
>    |___  Director's Loan
>    |___  Dividends
>    |             |___  Director1
>    |             |___  Director2
>    |             |___  Shareholder 1
>    |___ Grants (and stuff that does not count as income)
>    |___Opening Balances
> 
> Income [I]   (Box 6 - part)
>     |___ Interest
>     |___ Misc
>     | ___ Sales
>                  |___ EEC
>                  |     |____ goods  (Box 8) (sub accounts as needed)
>                  |     |____ services includes software (sub accounts as needed)
>                  | ___ UK
>                  |____ World
> 
> Expences [E]
>          |__Depreciation
>          |__ Emoluments
>          |            |___ Directors Fees
>          |            |___ NI Employer
>          |            |___ Employee 1
>          |                     |___NI
>          |                     |___Net Salary
>          |                     |___Stakeholder
>          |                     |___Tax
>          |___ Other Non VAT Expences
>          |___ VAT Purchases    (Box 7 - part)
>                      |___  Accountancy
>                      |___  Bank Charges
>                      |___  Consumables
>                      |___  EEC  reverse VAT purchases  (Box 6 - Part)
>                      |         |___ goods (Box 9) (sub accounts as needed)
>                      |         |___ services   includes software (sub accounts as needed)
>                      |___  Office
>                      |___  Phone and Internet
>                      |___  Software
>                      |___  Subscriptions
>                      |___  Sundry
>                      |___  Travel / Accom
> 
> 
> Vince Valvona
> 
> 
> 
> 
> 
> 
> 
> 
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-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available