Vat reports and flat rate scheme


i am trying to create a vat report. We are on the flat rate scheme so we can only claim vat back on purchases over 2000.00. I only have one purchase over that amount but the vat it is reclaiming is more that. the vat we can reclaim is 585 but it is wanted to claim back just over 2000.00. I have the right settings on. Do you know why this could be?

I’ve referred this to our engineers and we will return to you shortly.

We have now had a chance to look at your account and it would appear that the purchases were entered before the Flat Rate VAT was enabled and therefore the VAT element was entered on all purchases, follow the steps below to correct:

  1. Go to the ‘VAT Settings’ and uncheck the VAT ‘Flat Rate Scheme’ option:

  1. Now go to each purchase and click ‘Modify Purchase’:

  1. Change the ‘Sub-Total’ to the gross amount and the ‘VAT Rate’ to ‘No VAT’ on the purchase invoice to remove the VAT element and click ‘Save Purchase’ to save the changes, in the example below, the Sub-total was £125.00, VAT was £25.00 and Total £150.00:

  1. Once you have updated all the purchase invoices for the Flat Rate VAT period, you then need to go back to the ‘VAT Settings’ and once again check the VAT ‘Flat Rate Scheme’ option.