I’ve bought a capital asset where I claimed 20% vat using the 20% selection box in the invoice, but I have now sold that same capital asset in the same tax year, but when I do the invoice for selling it, there is no option with the 20% vat option, so how do I do this in quickfile so I am paying 20% for that sale for vat and not my flatrate vat amount?
Thanks
You would need to adjust box 1 and 6 on your VAT return to account for the difference between the flat rate VAT (calculated automatically) and the standard VAT. You can add a note to explain the calculation.
Using this method does by adjusting the vat boxes in the vat section, would it then adjust the profit and loss for the corporation tax part in quickfile?
Any adjustments that affect the value of box 5 on your VAT return put the balancing entry into the balance sheet code called “manual adjustments” - it’s then up to you to journal it from there to the appropriate nominal(s) depending on the reason for the adjustments.
In this case the appropriate nominal for the adjustment is probably “Flat Rate VAT Sales Adjustment” - on FR VAT your P&L still shows the ex-VAT value of your sales invoices on the actual code assigned to the invoice line, then when you submit the return it uses the flat rate adjustment code to show additional income equal to the difference between the 20% VAT you charged your customers and the less-than-20% that you paid to HMRC. If you’re saying that you need to pay over the full 20% on the sale of this asset then you effectively need to cancel out this “extra income” from the FR adjustment that pertains to this one specific sale, to reduce your P&L turnover.