VAT in Profit and Loss Account

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1

Hello All

This should be an easy one. In my profit and loss account, it shows that my (4000) general sales = £45k, and flat rate vat adjustment (4999) is £8.5k, making a total turnover of £36k.

But, the real turnover (without VAT) is actually £45k instead of £36k. It seems that the VAT adjustment is double accounted or something.

Any help to rectify this is much appreciated.

Thank you in advance.

regards
NK

3

Flat rate vat works like as follows

you charge as normal to your customer say 100+ 20 (vat) = total 120
Flat rate % = say 12%

vat liability will be 120 total X 12% = 14.40 rest will be flat rate adjustment which will become part of turnover for CT purpose, in this case it is 20-14.40=5.6

Is that what is happening in your case?

4

Hello,

Thank you for your reply. I found out that the problem was an wrong journal input.

I think I am ok now.

Thanks again

regards
NK

5

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