My accountant set our quickfile up as flat rate for VAT which is calculating on the gross invoice rather than the net which we have entered. Therefore our VAT return is calculating much higher than what is due. This quarter I have done an adjustment but should I take it off the flat rate for future invoices?
You should always use the accounting method that you have agreed with HMRC. So it’s worth checking with HMRC to ensure you are using the correct method. When you have done this you can change the VAT accounting method in Reports >> VAT Returns >> VAT Settings.
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