QuickFile calculates vat liability at 20% is it possible to calculate any liability using the flat rate scheme percentages?
Invoices are issued and marked up at 20%. When the VAT return is created it will calculate your liability at the flat rate percentage and apply an adjustment.
http://help.quickfile.co.uk/main/1/flat_rate_vat.htm#7
Even though you are on the flat rate screen you still need to issue invoices with the standard VAT rates for your suppliers.
Hi Glenn
I fully understand this and apologise for misleading you, I refer more to the tax summary and balance sheet which appears not to take flat rate into consideration?
Rob
The way we work the flat rate scheme is via adjustments. Technically it’s very difficult to show one VAT rate on an invoice but post a different value to the COA. There are lots of quirks with VAT and we try not to add a lot of complexity to the system by handling these odd situations.
Also by doing it this way you can change your flat rate % at any time without individually going back and changing it on 100s of invoices.
I understand, thanks for your reply.
Rob