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Changing VAT schemes

Our limited company is leaving the Flat Rate scheme at the end of June and going onto standard VAT accounting.

I have some company purchases prior to being VAT registered which I will be able to claim VAT back on under the standard VAT accounting. Fortunately, year end on my Quickfile account has not been run yet, so I’ve been able to update each invoice with VAT paid. I can now have a cumulative figure in purchase tax control account (2201).

On 1 July, I will change Quickfile settings to reflect standard VAT accounting on cash basis. What will happen on my next return (09/2019) with value sitting in 2201. Will it automatically pull through onto the return or do I need to manually do something?

Hi @Harvie

The VAT returns on QuickFile are derived from:

  • Sales and Purchase invoices
  • Prepayments
  • Payment dates

Although depending if you’re on cash or accrual accounting, depends which of the above is actually used. A balance on 2201 won’t necessarily appear automatically unless it’s linked with one of the above.

What I would suggest is to download the calculations generated for the return (which should be done for every return anyway), and some manual adjustments may be required.

If you have an accountant, it may be best to double check that everything is correct (I’m not one).

I hope this helps.

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