Emergency Budget - 22 June 2010

The Chancellor's Budget included the following announcements that will affect your Sage Accounts and Sage Payroll software:

VAT

• The Standard Rate will increase from 17.5% to 20% from 4 January 2011.
• The Reduced Rate will remain at 5%.

Income Tax

• The personal allowance increases to £7,475 from April 2011.
• The Higher Rate threshold is frozen until 2013/14.

National Insurance (NI)

• The level at which employers start to pay NI will increase by £21 per week above the usual increase in April 2011.
• A new scheme is to be announced to exempt the first ten employees from employer's NI, up to £5000 per employee in their first year of business. This scheme will only apply to businesses outside of London, the South East and East of England. The Government aims to have this scheme up and running from September 2010, subject to the relevant legal requirements. Any qualifying new business set up from today will also be included. We are awaiting confirmation from HMRC as to how this will be implemented.
• The previously announced 1% increase in employee and employer NI contributions will still go ahead from April 2011.

How does this affect your Sage software?

We'll look closely at the detail of the Budget announcement to see what the impact is for our software. To keep you fully informed, we'll update this page and Ask Sage with more information as soon as we have it. We'll also communicate further information in our SageCover newsletters and bulletins.

Submitting your VAT Return online

If you register for VAT on or after 1 April 2010, you must submit your VAT Return figures online.

VAT registered businesses with a turnover in excess of £100,000 must also submit their VAT Return figures online.

Note: If you submit your VAT Return figures online, you must pay electronically.  For example, by Direct Debit or Sage eBanking.

To submit your VAT Return or EC Sales List online, you must have a Government Gateway account. If you do not have a Government Gateway account, you can apply for one at www.hmrc.gov.uk

Note: If you are registered with HMRC for submitting your payroll information you still need to register for VAT submissions.

To register, you will need to have the following information to hand:

• Your VAT registration number.
• Your principal place of business postcode.
• The date of VAT registration - This is the Effective Date of Registration shown on your VAT 4 Certificate of Registration.
• The final month of the last VAT Return that you submitted to HMRC. For example, if your last VAT Return was for October - December, the last month is December.
• The Box 5 figure from the last VAT Return that you submitted to HMRC.

When you receive your User ID and Activation PIN, you must activate them within 28 days from the date shown on your Activation PIN letter. If you do not, you will have to repeat the registration process. Your letter explains how to activate your registration.

Note: If you are an agent and you are not VAT registered you will need your VAT Agent Reference Number and your postcode. If you do not have a VAT Agent Reference Number you can apply for one at www.hmrc.gov.uk

Further support for Sage 50 Accounts and Sage Instant Accounts

If you are a SageCover customer, for further information about submitting your VAT Return online, please log in.

Further support for Sage 200, Sage MMS and Sage Line 100

• If you are a Business Partner who provides support to customers, please refer to the relevant news article:

  • Sage 200
  • Sage MMS
  • Sage Line 100
    

• If you use Sage 200 and are supported by a Business Partner, please contact them for assistance.
  
  
• If you use Sage 200 and are supported by Sage, please contact your technical support team on 0845 111 77 33.