VAT Flat rate scheme - reclaimed VAT

Hi, I have set up my account to submit my VAT returns through the MTD. I use a flat rate scheme which I have included in my settings. When I create my return, it includes VAT reclaims for the period. My understanding of the FRS is that input VAT is not reclaimable. Is that correct?

Yes, and you need to enter inputs gross not with vat split. unless it qualifies for capital expenditure vat reclaim

Thanks - then there must be a bug in the programme that feeds the numbers in the VAT return…

Hi @Michel1163

Have you checked the invoices that are showing to make sure that they’ve been entered correctly?

The issue does not seem to be in the invoices, but in input VAT that appears as being claimed. I can certainly reverse the entry, but I would have thought that if I tick the FRs box in the settings, there should be no circumstances where input VAT is reclaimed?

QFBeth Support Team
29 April

Hi @Michel1163

Have you checked the invoices that are showing to make sure that they’ve been entered correctly?

Hi @Michel1163

We would be happy to take a look at your account to see why you are getting figures in that box.

If you could confirm if you use the same email address for the forum as you do for your QuickFile account then we can locate your account and take a look

thanks - yes, i use the same email

@Michel1163 - We’ll send you a private message to discuss with this you further.

Had you already entered purchases with VAT broken down before you flipped the switch to turn on flat rate? If so you may need to temporarily turn off the flat rate setting, then go back and edit those purchases to be zero VAT (with the gross total in the net column), then turn flat rate back on again.

With FRS enabled the UI will not normally allow you to separate out purchase VAT, but there is still the option to enable that for specific purchases that qualify for reclaim as capital expenditure.

Ok Thanks - that must explain it. I will do as suggested

Thanks - Look forward to chatting

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