The Flat rate VAT scheme for hotels has been reduced to Zero for hotels due to COVID until 12th January 2021 but the Quickfile settings will only allow a flat rate of 1% or above ? To ensure the Vat return is correct is the only work around to show all sales for that period as non vatable for that period
Yes. The no vat option is actually 0%
It wouldn’t be correct to make the invoices 0% though - the flat rate is zero but you still need to show 5% VAT on your invoices so your VAT registered customers can reclaim it.
If QuickFile won’t allow a zero flat rate then the answer is probably to run the return with your normal 10.5% flat rate, but then manually adjust box 1 down to zero and journal the same amount from “manual adjustments” to “flat rate adjustment” (this is what QuickFile would normally do automatically if it were possible to set zero as your flat rate).
Your right. I didn’t tbink about still needing to charge vat but not having to pay any.
This topic was automatically closed after 7 days. New replies are no longer allowed.