This page lists the tax settings in Soniq Studio and what each one puts on an invoice. To set them up, see How to add tax details to your invoices.
Soniq Studio records the settings you choose. It does not choose them for you, and it does not check them against HMRC. The tax settings cover the United Kingdom today. If you are not sure which settings apply to you, see Register for VAT on GOV.UK and the VAT guide (VAT Notice 700), or speak to your accountant.
You find the settings in Account > Tax & compliance.
Tax registration
| Field | What it does |
|---|---|
| Are you registered for VAT or another sales tax? | No or Yes. No is the starting answer. When you choose Yes, the other fields on this card appear, and the Tax section appears on the price form. |
| Country | The country you are registered in. United Kingdom is the country Soniq Studio supports today. The country sets the tax type and the number format. |
| Tax type | The kind of tax you are registered for. The country sets it to VAT. |
| VAT number | Your VAT number. Required when you answer Yes. Soniq Studio checks that a UK number has the GB VAT number format, and shows how it will appear on invoices. It does not check the registration with HMRC. Invoices show it after “VAT No.”. |
When you answer Yes, the card shows Tax rates are set on each price. If any price has no tax treatment yet, Review your prices links to your prices.
Company
| Field | What it does |
|---|---|
| Company registration number (optional) | For teachers who trade as a limited company. Invoices show it as “Company No.” under your name and address, whether or not you are registered for VAT. |
Tax on your invoices
When you are not registered for VAT, this card has one choice, When you’re not registered.
| Choice | What invoices show |
|---|---|
| Say I’m not registered | The tax note “No VAT — not VAT registered” under the Total due. Invoices never show a VAT line or a VAT number. |
| Don’t mention tax | Nothing about tax. This is the starting choice. |
When you are registered for VAT, the card has no choice. Your VAT number, the tax on each line and the VAT totals appear on every invoice, because a VAT invoice needs them.
The Preview on this card shows an example invoice built from your own prices, with the choices on the page that you have not saved yet.
Tax treatments
A price’s tax treatment says how VAT applies to it. You choose it under VAT treatment in the Tax section of the price form. The section shows only when you are registered for VAT.
| Treatment | On the price form | Tax column on the invoice | Row under Total before VAT |
|---|---|---|---|
| Exempt | No VAT. Invoices say “Exempt”. | Exempt | “Exempt — no VAT”. It never shows a rate. |
| Zero-rated | VAT at 0%. Invoices show a 0% VAT line. | VAT 0% | “VAT @ 0%” |
| Reduced rate | You enter the rate. | VAT and the rate you entered | “VAT @” and the rate you entered |
| Standard rate | You enter the rate. | VAT and the rate you entered | “VAT @” and the rate you entered |
| No VAT on this price | Outside the scope of VAT. Nothing is shown. | No VAT | None |
Exempt, zero-rated and no VAT all mean the customer pays no VAT on that line, but they are not the same thing. Soniq Studio keeps them apart on every invoice, so your accountant can see which is which.
Prices you made before you registered have No VAT on this price until you change them.
Starting choices on a new price
When you are registered and create a new price, Soniq Studio fills in a starting tax treatment from the rate type. You can change any of it before you save.
| Rate type | Starting treatment | Starting amount choice |
|---|---|---|
| Per hour | Exempt | Includes VAT |
| Flat | Standard rate, with a rate filled in for the United Kingdom | Plus VAT |
These are a starting point for typing, not a decision about your tax. Soniq Studio does not know which treatment applies to you.
VAT rate
For Reduced rate and Standard rate, you enter the VAT rate as a percentage. Soniq Studio uses the rate you saved on the price. It does not update rates for you when they change.
Tax-inclusive prices
For Reduced rate and Standard rate, The amount says how you typed the price’s Amount.
| Choice | What it means |
|---|---|
| Includes VAT | You type what the customer pays. Soniq Studio works out the amount before VAT and saves that. |
| Plus VAT | You type the amount before VAT. Soniq Studio adds the VAT on top. |
Either way, Soniq Studio saves every price as the amount before VAT, and each invoice line adds the VAT on top of it. Each line’s VAT is rounded to the nearest penny. This is also how accounting software such as FreeAgent works out VAT, so the totals match when the invoice reaches your books.
Exempt, Zero-rated and No VAT on this price add no VAT, so they have no amount choice.
When a price can’t be charged to the penny
Because the VAT is added to the amount before VAT and then rounded, not every price you type with Includes VAT can be charged exactly. When that happens, Soniq Studio picks the nearest total that is not less than what you typed, and the form tells you before you save. For example, with a 20% rate typed in, £10.05 including VAT shows:
£10.05 can’t be split into a net price plus 20% VAT to the penny. Students pay £10.06 (£8.38 + £1.68 VAT).
If you’d rather charge a different total, change the amount until the form shows the total you want.
The summary under the form shows the result for one unit of the price:
- Customer pays: what the customer pays.
- VAT (or Exempt, or No VAT): the tax added to the price.
- You keep: the amount before VAT, which Soniq Studio saves as the price.
Your prices list shows each price before VAT, with its rate, such as + VAT 20%.
What an invoice keeps
Soniq Studio copies your tax details and each line’s tax treatment, rate and tax amount onto the invoice when it creates the invoice.
- Later changes to your tax settings or your prices do not change invoices you already created, including drafts.
- You cannot edit tax on an invoice. It comes from the price.
- To fix the tax on a draft, edit the price, then create the invoice again.
- To fix the tax on an invoice you sent, issue a credit note. See How to issue a refund, credit note, or lesson credit.
Invoices created before you set up tax show the lesson amounts and the total, as before.
Where tax details appear
Tax details appear in the same way on:
- the invoice page in Soniq Studio,
- the invoice PDF,
- the invoice email,
- the invoice in the contact portal,
- the payment page.
On an invoice for a registered teacher, the lines add up to Total before VAT. Under it, one row for each treatment and rate adds up the tax on those lines. The Total due comes last.