When you create your account, default rates will apply automatically. You can add, edit and manage your default rates from the Tax Codes page in the Settings tab.
📌TIP: This can be useful if there’s a change in tax or vat legislation and if you need to add more rates.
Edit or add a tax code
Click Settings on the navigation bar.
Select Tax Codes.
Click a code name to edit it.
Click Add Tax Code if you need to create a new vat rate.
Click the Save button to apply any changes.
Setting Default VAT Codes
To set a default VAT code for a company not registered for VAT:
Navigate to Company Settings > Accounting Settings > General.
Confirm that Not Registered for VAT is selected.
In the Purchases and Sales sections, select the appropriate 0% VAT code from the Default VAT Code dropdowns.
Click Save Changes.
Ensure the selected code matches the format expected by your accounting software. For example, a code accepted in AutoEntry may be rejected by Sage 50 if the formats differ.
Tax code details
When editing/adding a tax rate, take note of the following:
Income Tax Category vs. Default Tax Codes
AutoEntry distinguishes between Income Tax Categories and Default Tax Codes:
Income Tax Category: Used for Self Assessment/MTD for Income Tax submissions.
Default Tax Codes: Related to VAT and used for VAT treatment.
Set the Income Tax Category for MTD ITSA purposes and configure Default Tax Codes only if VAT treatment is required.
Name
The name you enter must be unique. This is useful when you import a sales or expenses batch and there are two or more tax rates with the same rate. Otherwise, you can simply enter the % value in the import template itself for your own clarity.
Ensure the name format is compatible with your accounting software. For instance, a code accepted in AutoEntry may be rejected by Sage 50 if the formats differ.
Available for
This option allows you to separate tax rates between sales and expenses (depending on your country/region).
Drop-down list order
You can re-order the tax rate types by using the drag button on the left of any row. This will change the order of how they appear within batch entry drop-down menus and the tax reports.
Add or update
When you click Add or Update a tax rate in the pop-up window, this won't apply the changes straight away. Remember to click Save again on the main tax list page after the pop-up window closes to apply your changes.
📌TIP: If a default VAT code change does not take effect:
Verify that you selected a valid 0% VAT code (e.g., T0 - 0.00%) in the Purchases Default VAT Code dropdown.
Ensure you clicked Save Changes after making the selection.
If the dropdown only shows percentages (e.g., 20% or 5%), choose the available No VAT/T0 option based on your accounting setup.
Remember, changes may not apply if overridden by supplier-specific rules.
What next
After you create a tax code, you can select it from the drop-down lists when you code your transactions.
📌TIP: You can also allocate a default tax rate to your Account categories. This means the tax code will apply automatically when you select an account category.
📌TIP: To minimize AutoEntry’s auto-selection of categories:
Avoid setting a default category.
Choose “No” when prompted to remember a category after changing a code.
Set explicit categories per supplier in the Contacts section to ensure the intended code is used.
Note that AutoEntry may still suggest categories based on learned behavior. Always review and adjust categories before publishing.