Hi, I have recently registered for the Flat rate VAT scheme and my first return is done in a few days.
I’m not totally sure what is the correct way to account for VAT on my purchases. Do I still account for the VAT on the things I have bought and put in 20%. Do I put it at 0% or do I uncheck the "allow VAT to be declared on this purchase and Ignore the VAT on purchases altogether?
If the latter it means that section 7 of my return “Total value of purchases exc VAT” is empty. Should this not be declared as I have actually paid VAT on purchases so as HMRC do not class my business as a limited cost business?