UK VAT
VAT invoicing and accounting for the UK
Pick the United Kingdom when you set up and Kanakku configures VAT for you: pounds sterling, an April financial year, the three UK VAT rates and a VAT chart of accounts.
What you get when you pick United Kingdom
CurrencyPound sterling (GBP)
Financial yearApril to March
TaxVAT
Rates20% standard, 5% reduced and 0% zero
Your chart of accounts, tax accounts and default tax rates are created for you at the same time, so you can start invoicing straight away.
How the tax is worked out
- Each invoice line carries its own VAT rate: 20%, 5% or 0%.
- Rates are checked on the server. A rate outside those three is not accepted and falls back to the 20% standard rate.
- VAT on sales and VAT you can reclaim on purchases post to their own accounts as you go.
Reports from your books
- UK VAT 9-box summary
- Tax summary
- Profit and loss, balance sheet and trial balance
Figures come from the tax accounts in your ledger, so they reconcile to your trial balance.
Good to know
- Your country, currency, tax regime and financial-year start are fixed once you record your first transaction, so choose them carefully during setup.
- Kanakku prepares the figures for your return. Check your filing obligations and rates with your accountant; this page is not tax advice.
Frequently asked questions
Which UK VAT rates are supported?
Standard 20%, reduced 5% and zero 0%, chosen per invoice line. There is also a no-tax option for exempt lines.
Where do the 9-box figures come from?
From your ledger's VAT accounts and the sales and purchase accounts for the period, so the summary reconciles to your trial balance.
Set up UK VAT in a minute
Start on the Free plan, choose United Kingdom, and Kanakku configures the rest.