HOME / COMMUNITY Switch to knowledge base

Moved to Flat rate VAT

Hi all

From this VAT period I am now on the Flat Rate VAT Scheme (4%).
I have changed the VAT settings in QF. To be nosey and see if it’s working ok I’ve just tried to calculate a new VAT period. For some reason my purchases are coming up with VAT to claim back, Surely this should be zero now?
James

Hi @Jsmith9114

If you’ve entered invoices with VAT included, it’s likely this is where it’s coming from. If you amend the purchases and remove the VAT, this should then be showing correctly.

With flat rate enabled, you may need to check this box to reveal the VAT boxes:

Hi Mathew

I’m confused. When I enter invoices on the receipt hub there is no option to enter the VAT now, So I just enter the full invoice balance, Then tag it in the bank statement section to mark it as paid.

James

That’s correct. But before you enabled the flat rate scheme on QuickFile, I’d imagine you would have been entering your invoices with VAT (net + VAT rather than gross)?

For a previous VAT quarter, Yes. But it seems to be doing it even for latest invoices for some reason I think.

James

The VAT settings (e.g. like flat rate) apply at the time of the invoice being entered.

Switching schemes may require a manual adjustment to ensure everything is accounted correctly.

What I think has happened here however, is invoices have been entered with the VAT, then the VAT scheme changed to flat rate, causing the VAT to still be on the invoices and pulled into the return.

Hi

Right ok, I’ll plough through all the old invoices and try again.

Thanks
James

1 Like

If you “download calculations” on the vat return screen it should show you exactly which QFnnnn purchases you need to revisit.

2 Likes

Thanks Ian, that’s very handy to know

James

A post was split to a new topic: Changed to VAT rate, part paid an invoice - can I claim the VAT back?