Before you start submitting your VAT Returns, make sure that the settings in Sage 50 Accounts are correct for your business.

1. On the menu bar click Settings, click Company Preferences then click the VAT tab.
   
   
   
   
2. Check that the following settings are correct:
   
   

   VAT Reg	Your company VAT Registration number.
   Non-Vatable Tax Code	The tax code you use for transactions that don't involve VAT, T9 by default. Transactions posted using this tax code don't appear on the VAT Return. This must be a tax code that isn't included on the VAT Return in Settings, Configuration.
   VAT Scheme	The VAT scheme your company is using. Sage 50 Accounts allows you to use the following VAT schemes: Standard VAT VAT Cash Accounting Flat Rate - Invoiced Based (UK based only) Flat Rate - Cash Based (UK based only) If you've been using an incorrect VAT Scheme, you must prepare your data before switching schemes.
   Flat Rate	If you've selected a Flat Rate VAT scheme, enter the VAT rate percentage from HMRC.
   Enable Making Tax Digital for VAT submissions	Before your first submission under Making Tax Digital you must select this check box.
   HMRC Payments	If you use Sage e-banking to pay your VAT liability, enter the HMRC bank account details.

   
   
   
   There are more VAT settings you may also find useful.
   
   
3. To confirm your VAT settings, click OK.

Find out more about MTD

• Watch our free MTD webinar
• Sage Making Tax Digital Help Centre
• MTD Checklist for Sage 50 Accounts
• GOV.UK - Making Tax Digital for VAT