Sage 50cloud Payroll

Correcting a previous payroll run

Mistakes can happen or information arrives late after the payroll has been processed don’t worry in Sage 50cloud Payroll it’s easy to go back and correct things.

If you need to go back and correct a previous payroll run, the Rollback option can be used to make amendments that affect some or all your employees.

What the rollback does

When you run a rollback, these values are reset to what they were before the period your roll back to:

• Change of pay frequency
• Tax code
• NI category
• Leaving date
• YTD values
• History
• Diary entries
• Nominal link posting date
• Pension schemes

TIP: If an employee included in the rollback is receiving statutory payments, you need to check that the dates within the Absence Diary are correct, as these dates can be entered in arrears, whereas roll back will only clear up to the exact week you select.

Before you roll back

Make sure you have details of your employee’s original payments.  This will help you to calculate any adjustments after you make the correction.  To get this information, you can reprint the employee’s payslip.

If you need to reverse a nominal link posted to your Sage Accounts software as part of the rollback, you should print the Nominal Link Transaction Report (Un-Grouped) report.

Roll back your employees

1. Take a backup of your data.
2. On the Employees List select the required employees.
3. Click Tasks then click Rollback.
4. Click Next then click Next.
5. Select the earliest pay period that you want to remove.
6. Click
7. Click Next then click Finish.
8. Click Ok.

You can now process the payroll again for the employees that have been rolled back.  If you have made changes to the pay period after you have submitted your normal FPS, you need to submit the FPS adjustment to let HMRC know.

If you would like help with Roll Back or need any other help or advice with your payroll please contact us

Sage 50cloud Accounts

Preparing your EU VAT Return for One Stop Shop (OSS) and Import One Stop Shop (IOSS) – UK

The way VAT is handled for online sales from business worldwide to consumers B2C in the European Union (EU) changed on 1^st July 2021, instead of registering and paying VAT in each country you sell to, you can choose to report and pay all EU VAT through a single return using:

• One Stop Shop (OSS)
• Import One Stop Shop (IOSS)

We will explain how to run OSS/IOSS reports in Sage 50 Accounts V27.2 and above to help you produce your EU VAT Returns and how to record your VAT Liability payments when based in the UK.

When using OSS/IOSS Reporting it is recommended you also use the Foreign Trader feature to help simplify the reporting process.

How OSS/IOSS affects your UK VAT Return

When you process under the OSS or IOSS scheme, certain transactions may appear in boxes 6 and 8 of your UK VAT Return.  This does not affect how you process your UK VAT return and you submit your UK VAT returns as normal.

Run your OSS/IOSS reports

When you need to produce your quarterly OSS VAT return or your monthly IOSS VAT return, you will need to run your OSS/IOSS reports to identify the following:

• OSS / IOSS values for the return period, and
• Any corrections to the values for the previous period.

Running Reports for the Return Period

To get the values for the return, you will need to run the relevant summary report for the scheme you are using.

1. In Sage 50 Accounts, click VAT then click Reports.
2. Click OSS IOSS transactions, then select the summary report for the scheme you are using, for example, IOSS Transactions (Summary).
3. Click Preview, enter the return start and end dates and then click OK.
4. For future reference you should print or save the report, click Print or Export to do this.
5. To close the report, click Close.

It is also recommended that you follow the above steps to print or save the detailed report for your scheme for example IOSS Transactions (Detailed).  This is useful if you need to identify corrections at a later date.

Identify previous Period Corrections

When completing your return, you must also declare any corrections you have made in previous periods.  Any correction only needs to be declared once.

1. Run your summary report for the previous period you want to check.
2. Compare this to the original report you used to complete the previous return.
3. If any totals differ, run the detailed report for the previous period.
4. Compare this to the original detailed report from the previous period to identify the correction
5. If you have not already declared this correction, you should declare it on the next return for this period.

Exchange Rates

When using Foreign Trader, the report shows the values in the destination country currency.  If you need to convert your values to a different currency for your return, you should do this manually using the European Central Bank exchange rate on the last day of the reporting period.

When not using Foreign Trader, you must first manually convert foreign currency transactions to capture the value of VAT in the destination currency as at the transaction date.   Then if a further conversation is needed for your return, you should do this using the European Central Bank exchange rate on the last day of the reporting period.

Post your OSS/IOSS VAT Transfer Journals

When you post an OSS/IOSS transaction, the VAT element is not posted to your normal VAT liability nominal code.  Instead it is posted to one of the following nominal control accounts depending on the scheme you are using.

• 2205 – Union OSS Tax Control Account
• 2206 – Non-union OSS Tax Control account
• 2207 – IOSS Tax Control Accounts

Once you calculate the VAT due for your OSS/IOSS VAT Return, you must transfer that amount from the relevant control account to your VAT liability nominal code.  This shows the VAT amount due to be paid to the tax authority you have registered with for the scheme.

Note – Your VAT transfer journal must be posted in your base currency.

1. In Sage 50cloud Accounts, click Nominal codes then click journal entry.
2. In Reference, enter a reference, then in Posting Date enter the current date.
3. Enter the details to record the VAT liability transfer. For this example, we are using the IOSS scheme and have a liability of £1500.00

N/C       Name                                          Details                          T/C       Debit                Credit

2202     VAT Liability                                 IOSS VAT Liability         T9                                1500.00

2207     IOSS Tax Control Account           IOSS VAT Liability         T9        1500.00

4. Click Save then click Close.

Make your EU VAT Liability Payment

Once you make your OSS/IOSS VAT liability payment to the relevant tax authority you can record this as a bank payment.  This reflects the payment in your bank account, and also reduced the balance on your VAT liability account

1. Click Bank accounts, click Payments, then click Bank payment.
2. Complete the Bank Payments window as follows:

Bank                Date                   N/c       Details                        Net                   T/C    Tax

Bank Account    Payment Date     2202     IOSS VAT liability        1500.00             T9       0.00

3. Click Save then click Close.

If you would like help running your EU VAT return for the One Stop Shop (OSS) and Import One Stop Shop (IOSS) or  need any other help,  please contact us

Sage 50cloud Accounts

E-commerce VAT in the EU has changed from 1^st July 2021

The way VAT is handled for online sales from business worldwide to consumers B2C in the European Union (EU) changed on 1^st July 2021, instead of registering and paying VAT in each country you sell to, you can choose to report and pay all EU VAT through a single return using.

• One Stop Shop (OSS)
• Import One Stop Shop (IOSS)

With Sage 50cloud Accounts v27.2 and above, you can enable OSS/IOSS to help you deal with sales to consumers in EU under the One Stop Shop and the Import One Stop Shop.

1. Make sure you have Sage 50cloud V27.2 or above loaded.
2. Click Tools then click Activation then click Enable OSS/IOSS reporting.
3. Click Next and select the nominal codes to use for the VAT liability control accounts for each scheme.

Scheme                        Nominal Code  Description     

Union OSS                    2205                             Union OSS Tax Control Account

Non-union OSS             2206                             Non-union OSS Tax Control Account

IOSS                            2207                             IOSS Tax Control Account

By default, nominal codes 2205-2207 are used, if these codes are already in use, three other codes within Current Liabilities will be used.

4. Click Next then click Finish.

Setting up tax codes to use with OSS/IOSS reporting

 When using OSS/IOSS reporting, to make it easier to process transactions and give you flexibility when you run reports, it is recommended setting up separate tax codes for each different tax rate within each country.

Example – Germany has three rates, Zero, Reduced and Standard, for both goods and services, you would set up 6 different tax codes for use with just Germany.

1. Click Settings then click Configuration and click Tax Codes.
2. Select the required Code and click Edit.

Tip: you can use any free code you are not already using; however, it is recommended using a range that has a number of free tax codes together.

3. Enter the following details:

Enable Import/Export Code                 Select this checkbox.

OSS/OISS codes                                  Select this checkbox.

Goods/Service drop-down                   Select whether the tax code is for goods or Services.

Rate                                                     Enter the rate for this tax code.

Description                                          Enter a description to help identify this tax code

4. Click OK, then click OK.

Processing OSS/IOSS transactions

 Using Batch Invoices or Batch Credit Notes

1. Click Customers then click Batch invoice or Batch credit.
2. Create the batch invoice or credit as usual, however, when you select the tax code, choose one of the OSS/IOSS tax codes you have previously set up.

Note: do not use the same tax code for both goods and services.  This is because they affect your VAT return differently.

3. With OSS/IOSS transactions, there are two new options you need to select:

• Country of VAT – the country you are shipping to.
• Report type – select one of the following

Union OSS – only if you are in Northern Ireland

Non-Union OSS – use this when supplying services to an EU consumer from a supplier outside the EU.

IOSS  – Use this when distance selling goods up to the value of €150 to an EU consumer, from a supplier outside the EU.

4. Click Save then click Close.

Using Invoices and credits and sales orders

1. Create a new invoice, credit or sales order as usual:

• Product and services invoice – Click Invoices and credits then click New invoice.
• Product and services credit – Click Invoices and credits then click New credit.
• Sales order – Click Sales orders then click New.

2. When entering your tax codes, choose one of the OSS/IOSS tax codes you previously set up.

Note: do not use the same tax code for both goods and services.  This is because they affect your VAT return differently.

3. Click the Order tab and select the Apply OSS/IOSS reporting check-box.
4. Click Country of VAT and select the country the product is shipped to.
5. Click Report type and select one of the following:

Union OSS – only if you are in Northern Ireland

Non-Union OSS – use this when supplying services to an EU consumer         from a supplier outside the EU.

IOSS – Use this when distance selling goods up to the value of €150 to an EU consumer, from a supplier outside the EU.

6. Click Save then click Close

If you would like help setting up new tax codes or training on how to enter the new information required, or need any other help, please contact us

Sage 50cloud Payroll

Sending submissions to HMRC

Every time you process your payroll, your need to submit information to HMRC.  To ensure HMRC are receiving your submissions, you can run a submissions health check.

Check your submission details in Sage Payroll are correct

The first thing you need to check is that all of the HMRC details used to submit your payroll information are correct.

1. Click Company then click Settings.
2. Click the Details tab then ensure the Tax Dist./Ref. is correct.

This is also known as your PAYE reference number.

3. Click the HMRC Payments tab then ensure the Accounts Office Reference is correct.
4. Click OK.
5. Click e-Submissions then click e-Submission Settings.
6. Click the Settings tab then ensure the Company Name and Tax Dist./Ref. are correct.
7. The User ID and Password are your login credentials for the HMRC Government Gateway. If you are unsure of your details please contact HMRC.
8. Click the Contact Details tab then ensure the contact details for the person registered with the Government Gateway.
9. Click Save then click Close.

Check the values you are submitting are on time and correct

The most important and common submission you make for RTI is the FPS.  You must submit this every time you pay your employees and it’s important that you submit it on or before the date the employees actually receive their pay.  If you submit after this date, you must enter a reason as to why it’s late and you may receive a penalty from HMRC.

As well as sending your information on time, it’s important that what you actual sending is correct.  This means you will not need to reprocess and resubmit information at a later date.

Ensure you get a submission successful message

Every time you make a submission to HMRC through Sage Payroll, it checks for a response from the Government Gateway to say whether or not the submission was successful.

If the Government Gateway is busy, it may take some time to receive a response.  Using the Check again later option, you can continue working and leave the submission running in the background.  You can then collect your response at a later date.

If the submission is successful, you get a message notifying you of this and you have the option to view and print the submission log.

It is strongly recommended that you view the submission log and make a note of the correlation ID.  This is the confirmation that your submission was make successfully and you can use it to help refer to a specific submission when speaking to HMRC.

If the submission was unsuccessful, you can click to see why the submission failed.

To check past submissions, click e-Submissions, then e-Submissions Log and you can then view any past submissions.

Check for the email confirmation from HMRC

When you make a submission to the Government Gateway, a confirmation email is automatically generated and sent to you.  The email is sent to the email address you registered on your Government Gateway account.  To locate this in Sage 50cloud Payroll

1. Click e-submission then click e-Submissions Settings.
2. Click Contact Details then click E-Mail.

We recommend that you save this email for future reference.  If you don’t receive this email, check your junk or span folders.  If you still haven’t received an email but you have a correlation ID, you should contact HMRC on 0300 200 32000.

Check the values on your Government Gateway account are what you expect

We recommend that you regularly log in to your Government Gateway account and check your values.  HMRC have an online PAYE Liabilities and Payments Viewer that you can use to check your own account to see what is due and what payments you have submitted.

If you would like help with your Payroll Submissions or need any other help or advice with your payroll please contact us