VAT Flat Rate adjustment

[Calum_Macdonald]

Hi -

My 1% discount on the VAT flat rate scheme expired on 31st December 2022.

I’m filing my (late) VAT return for the period 1 November 2022 to 31st January 2023.

Can I adjust the flat rate scheme per month in Quick File? At the moment, I can only find a way to do an adjustment across all invoices.

Thanks

[QFSteve]

Hello @Calum_Macdonald

The calculation is done at the point of the vat return being generated.

If you are doing quarterly periods, 1 rate would be applied, If however you are doing monthly returns then you could adjust it before each return is generated.

[Calum_Macdonald]

Hi there @QFSteve - I’m grateful for your reply.

I’m doing quarterly periods as things stand and so my Flat Rate percentage changes during the period.

Is there a way to accommodate this in Quick FIle?

At this point, I’m wondering if I should just overpay my VAT for this quarter, ignoring the 1% discount and paying at 12.5% for the three months, then claim it back next month.

What do you think?

[QFSteve]

Hello @Calum_Macdonald

I’m doing quarterly periods as things stand and so my Flat Rate percentage changes during the period.
Is there a way to accommodate this in QuickFIle?

As I mentioned, The calculation is done at the point of the vat return being generated.
If it is a quarterly return only 1 rate can be applied.

It may be worth speaking to HMRC or your accountant for the best course of action as we are not registered accountants nor bookkeepers.

[cbstephensaca]

I would suggest you make a manual adjustment to the VAT return to account for the difference in the two rates. I would set the flat rate to the new rate, and then adjust for the discounted amount in November to December as a manual adjustment in Box 1.