“Total VAT due” is same figure as “VAT due on sales and other outputs”

[Ronnie]

Hello

My 2nd VAT Return is showing “Total VAT due” to be the same figure as “VAT due on sales and other outputs”. I am on the flat rate scheme at 12% which the VAT Reports it as “Method:Cash Accounting (Flat Rate @ 12%)”.
If QF was calculating at 12% VAT then surely the “VAT due on Sales would be a lower figure”
I suspect this was the same for my first return but I did not notice it due to being inexperienced and trying to understand VAT.

Any help appreciated as to why QF the VAT like this.

Ron

[Glenn]

It’s taking your flat rate turnover in box 6 (£15,503) and calculating the VAT as 12% of this (£1,860.37).

£1,860.37 is your total output VAT, as you’re on flat rate there is no input VAT so the net amount payable is also £1,860.37.

If you look at the description for box 3 this is just the total of boxes 1 and 2.

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/vat/managing/returns-accounts/fat-rate-returns.htm#5

[Ronnie]

Hello Glenn

Thanks for the answer. Everything is correct as you say. Just another general question. In the first year of being VAT registered Companies receive any extra 1% VAT discount from HMRC for there 1st year of bing Vat registered. Should the VAT rate in my VAT settings be set at 11% for the first year, and then 12% for future years.

Ronnie

[Glenn]

Yes you would set the VAT rate in your VAT settings to reflect the discounted rate. After the first year you would then adjust this back to your normal rate.