We are currently flat rate vat.
In April we will be changing to a % rate.
I download statements from my bank for all supplier purchases. If I have made a payment of £100 to a supplier, and I change the supplier’s vatable rate in the settings will that invoice remain at £100 on the system with the VAT rate inclusive, or will the system add the vat onto the £100?
Can you clarify here, your % rate is changing? Is this due to the 1% discount applied in the first year for those on the Flat Rate scheme?
On flat rate VAT you should be invoicing at the standard VAT rate (20%), you don’t apply the Flat Rate VAT % on your invoices. In that respect you shouldn’t need to change any invoices.
When a Flat Rate VAT return is filed the system works out your total VATable turnover and then applies the assigned Flat Rate % to that (usually 12-16%).
You talk about payments to suppliers - do you mean you’re changing from flat rate VAT (where you’d enter all your purchases as “no vat”) to regular VAT (where you enter the actual VAT paid on purchases and offset it against that charged on sales)?
If that is what you mean then yes, if you create purchase records from bank tagging and set a VAT rate then it’ll do the gross-to-net calculation assuming that the transaction amount was the inc VAT price. That will usually give you the right calculation to within a few pence, but you may find you need to adjust the “VAT amount” box to match the supplier’s invoice. For purchases you should always go with what the supplier paperwork says if that is different from what QuickFile calculated for you.