VAT Return Report calculates VAT due at FR % using total turnover during period set. This results in FR% of total turnover, which is not VAT due during quarter.
If your quarter was £10,000 turnover and a FR of 10% the VAT Return Report would say £1000 to be paid. There would only be £833 to be paid to customs.
Hi @Bobnoise
Can I just clarify the issue here?
Box 1 on the VAT Return (“VAT due on sales and other outputs”), is being calculated using the total turnover for that period rather than the total VAT-able turnover.
Is that correct? Or is it more of the flat rate turnover in box 6?
Where does this £833 come from?
Hi @Bobnoise,
Under the FRS sales VAT is calculated on the total turnover, so the report is correct.
I can see where you’re getting £833.33 from (using the ‘VAT fraction’ the VAT within £10k would be £1666.67 (at 20%) so reducing that by half to get to 10% would give you £833.33), but the correct amount of VAT payable under FRS on £10k gross turnover is definitely £1,000.
Hope that helps.
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