I have generated my VAT return via QF for the first time, i see that my flate rate is 16.5% (at the top of the page) however the Total VAT Due amount is at 20%. I have read in the instructions that QF takes care of the Flate Rate adjustment using account 4999 when i submit my VAT. At what point will i see that adjustment? At the moment i don’t want to submit as I’m not confident that the VAT amount due is correct.
When you say “at 20%” do you mean it’s showing box 1 as 20% of box 6? If you “download calculations” then that should show you exactly how it thinks it is calculating all the boxes - check your VAT settings page to make sure you’ve got the flat rate settings configured right there (rather than the 16.5% just being something that has come through from the MTD system).
For flat rate box 6 should be the VAT inclusive total of the invoices for the period and box 1 should be 16.5% of that, under normal accounting box 6 would be the VAT exclusive total and box 1 would be roughly 20% of that (which is almost the same overall value, as 20% of the net is 16.66667% of the gross).
Hi Ian_Roberts, thanks for you reply. I have now downloaded the calculations and i see how it is calculating. I have been working out the flat rate amount incorrectly. Luckily i was only on this since last June, i have a larger VAT bill this quarter. Thank you so much, appreciate your guidance.
Yeah, basically once you’re using proper software like QuickFile to keep your records then the flat rate scheme ceases to be significantly less effort than just doing normal VAT accounting, and when your flat rate is as high as 16.5% you’re quite likely to be financially better off on normal VAT anyway (you might be paying a tiny fraction more on your sales but in return you can reclaim the VAT on your purchases).
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