VAT calculation wrong?

Accounting
1

Hi Guys

I’m new to VAT so if i sound stupid i apologise.

When i create a new invoice the VAT gets added to the sub total, but when i do a VAT return the program has added the VAT to the gross figure.

Please Help
Alan

2

Are you on Flat rate scheme ? if yes then that’s correct you pay FRV % on gross amount

1 Like
3

Hi @Surfpoint

I managed to find your account and @FaradayKeynes is partially correct. You seem to have enabled the flat rate scheme at 20.00%.

If you are on the flat rate scheme (FRS) you need to amend that to the correct rate by going to Account Settings >> Company Settings (click) >> VAT Settings.

If you’re not on the FRS, you should disable it, and everything should then calculate correctly.

Hope that helps!

p.s.: It’s not a stupid question. It’s more common than you think! :slight_smile: Besides, VAT can be a bit of a minefield!

1 Like
4

Thanks for being gentle on me :smile:

I didn’t realise i had checked the flat rate box. I’m still unsure how i should charge VAT, but that’s something i will have to take up with HMRC i suppose.

Thanks for your reply

Best Regards

Alan

1 Like