Setup First VAT Period

If you are registered for VAT, then you will need to enable the VAT module within System Settings.

IMPORTANT: It's really important you only enable the VAT module within ExpensePlus if your charity is registered for VAT and you have a valid UK VAT number.

Note: Most charities do not need to register for VAT, unless they have a taxable turnover of over £90,000.

Donations, Grants, Gift Aid etc. do NOT count towards taxable turnover, so typically VAT is only applicable to charities that rent rooms, run a cafe or bookstall, or sell tickets AND the income from these activities is more than £90,000.

VAT for charities is complex, and so it's highly recommended you seek expert advice before registering for VAT.

To enable the VAT module, go to System Settings > Organisation Settings , and click the 'edit' button to the right of the organisation section.

Then in the popup that appears, enable VAT and enter your charity's VAT number.

Note: you can only enable VAT if your charity creates accounts on an accruals basis.

Then, within the VAT module, you will need to set up your first VAT period.

Within this popup, you will need to set up your first VAT period and set your submission frequency (based on the frequency you have set this to with HMRC).

This is straightforward to do, if your VAT periods are aligned with your charity's financial year.

If this is not the case AND the period started prior to the first financial year start date within ExpensePlus, then:

Whilst you will be able to set the 'period end date' for your first VAT period within ExpensePlus to match your actual VAT period
You will need to set the start date for the VAT period to be your financial year start date.

If this is the case, then when creating your first VAT claim within ExpensePlus, you will need to combine the date for the period from ExpensePlus with the data for the first part of the period that is outside of ExpensePlus before making your submission to HMRC.