Calculations on VAT return

Support
1

I am using QuickFile for the first time so as to meet the new MTD requirement.

I have input my sales invoices for the month, each having 20% flat rate VAT.

When I create a VAT report the value of gross sales is carried forward to box 6 of the report and the VAT calculated as 20% of this value. However, on previous manual returns, box 6 is the total value of sales excluding VAT.

What this means is that QuickFile is calculating VAT due in Box1 as 20% of gross sales. Surely it should be 20% of net sales?

Interestingly on the balance sheet report, the VAT payable amount is showing the correct amount (ie 20% of the net sales).

What am I doing wrong? How can I get the VAT report to calculate VAT due as 20% of net sales and not 20% of gross sales?

Many thanks

2

You’ve used the words “flat rate” - that phrase has a specific meaning referring to the Flat Rate scheme, where you pay HMRC a flat percentage (anything up to 16.5% depending on your business type) of your gross sales instead of calculating and netting off the actual sales and purchase VAT yourself. If you’re not on this scheme then you shouldn’t tick the flat rate box.

3

Ian,
That worked!
Many thanks, Steve

4

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