How to set up a VAT scheme

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. 

If you were not VAT registered previously, click on the switch to a VAT scheme link.

Step 3.

On the bottom row, select the new VAT scheme and VAT accounting option. Enter the date the new scheme begins in the Date from box and leave the Date To field blank. Hit the Add link to complete, this will automatically close the scheme above it. 

If any VAT schemes have been added incorrectly, to update the scheme click on the delete link 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.

You do not need to set up a VAT scheme each year/month/week etc if nothing changes. Add your your historic schemes if they are different to your current scheme. Add your current scheme from when it began and only add a new scheme if anything changes to your scheme or if you switch to a completely different scheme.