VAT in Profit and Loss Account

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.


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?


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

I think I am ok now.

Thanks again


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