VAT Flat Rate Scheme - Can I adjust it?

[Kris_Maguire]

Hi folks,

Was hoping you could help me out here. I have entered all my VAT and company information into QuickFile. I am on the flat rate scheme at 14.5% however when I create an invoice for a new customer I can charge 20% or 5% but there’s no option to choose my 14.5% rate. I can’t and won’t overcharge VAT.

I have filled in all of my company details including VAT number and PAYE references and have double checked to make sure.

I have seen on the help section that we can only charge 20% and ask customers to reclaim the 5.5%, my clients are currently on plans that range from £3 per month to £5 per month, so claiming back the 5.5% will be a very small amount and probably more time than what it’s worth.

Any ideas on how to resolve this issue?

[Parker1090]

With the flat rate scheme, you must charge the correct VAT amount (5%/20%/No VAT - depending on the item/service). However, when you have to pay HMRC, you only have to pay a ‘flat rate’, in your case - 14.5%.

You effectively make 5.5% profit from the VAT you charge.

May be worth having a quick read of this:
https://www.gov.uk/vat-flat-rate-scheme/overview