I’m doing my VAT return and have never really question it before but noticed on this occasion that the Box 1 figure didn’t look right. I’m on cash accounting and did the backing report export to take a look. I can see that the correct 4 invoices are listed but their total amounts show under the Net column and the VAT column are empty for both box 1 and 6. All 4 sales invoices were created with a 20% VAT listed (and can be seen when I go back to the entry in Quickfile). On top of that, the amount it says I owe is greater than the 4 invoices VAT amounts combined - even with some purchases reducing the amount.
One quick question though - and this may just be one of those accountancy things that I don’t quite get - if each of the those 4 invoices have 20 % VAT applied and you totalled each of those VAT amounts, how is it that that value is lower than just applying 20% Flat Rate after the fact, which appears to be higher in this case? Wouldn’t the values be the same?
I realise that my question might be a of a mess so have tired to simplify my question below.
If I have 4 sales invoices that each charged £50 VAT at a 20% rate, I would expect my VAT Tax bill at most to be £200. With whatever I have set currently, I seem to be charged more. Is this some quirk of the Flat Rate scheme or something that I have configured incorrectly on Quickfile?
