Business Accounts - Tax pot percentages - no VAT option

For it to work it would have to know what parts of incoming money are to be allocated to where and under vat code, a massive ask that no bank can do unless it integrates with invoicing software.

So it’s not a small tweak

The tax pot was set up to set aside income tax.

I am manually moving my VAT to another pot, have been doing this for years.

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Unless there’s an editable “Tax” section for each transaction in the transaction details and the amount in the Tax Pot is automatically updated if the amount in the “Tax” section is changed.

Because every invoice will be identical will it? The amount of editing you are going to have to do for every invoice for various vat codes you will safer just doing it manually :rofl:

All this could be fixed by allowing setting custom percentages for tax pots.

I can think of one good reason not to allow custom percentages for tax pots:

Business account user uses wrong percentage for their pot, HMRC come calling and they don’t have enough money, and instead of realising it was their error they will skip straight to blaming Monzo.

No-one wants to end up with “Monzo gave bad business tax advice” groups on Facebook.

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I don’t think there is any good reason limit people to select between 10%, 15%, 20%, 30%, 40%.
By your logic, instead of letting people select precise percentage, they have to use wrong percentages.
It would be nice to have it at least for VAT, most VAT payers will charge 20% VAT.
Then VAT would be 1/6th = 16.66%

Again it’s not for VAT and your assuming that every invoice will be identical and every item will have Vat and at the same rate.

This is exactly how it works for lots of us. All my income is VATable.

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Then congrats 20% tax pot will work for you to set as VAT even though that’s not what it’s for.

As I have stated though not everyone will have an identical invoice with identical vat amounts.

If you are VAT payer, you have to charge VAT on everything. Yes there are exceptions, but lot of people provide the same service / product and there are very few exceptions.

No it will not, because VAT is not 20% of the money you received. It’s 20% of price without VAT.

Not sure why there wouldn’t be a proper VAT option for the plenty of us who need it… more useful than a vague 20% pot.

Another option could be to update the goal of a pot whenever the VAT amount of a transaction is edited.

Then people could manually transfer to the pot to set the VAT aside.