cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

Flat Rate VAT Scheme

I'm fairly new to Quickbooks, and have set everything up as per their instructions.  We are in the VAT Flat Rate Scheme and our current period is 1st Feb to 30th April.  The flat rate scheme is based on paying a percentage on the amount of sales INCLUSIVE of VAT.  However, it looks like Quickbooks are working out my VAT liability on my sales Exclusive of VAT.  This would result in me underpaying VAT.  Has anyone else come across this?

5 REPLIES 5
QuickBooks Team

Re: Flat Rate VAT Scheme

Thanks for posting your question on Community Sandra, I have linked an article from our Community here where my colleague has explained how FRS VAT works in QuickBooks Online. Please let us know whether this helps or if you have any further questions with regards to the FRS.

 

 

 

 

Not applicable

Re: Flat Rate VAT Scheme

As far as I can see, from your link, that is exactly what I have done yet, Quickbooks is calculating my VAT tax liability on my sales excluding VAT not including VAT which is wrong.

Not applicable

Re: Flat Rate VAT Scheme

In fact Edward, I have looked further at your article and you are wrong.  If someone is on a flat rate of 9.5% it works like this:  

Sales invoiced - £8000

VAT (20%) £1600

Total invoiced £9600

Therefore the amount you pay to HMRC here would be £912 which is 9.5% of £9600.

In your article you are saying that the amount payable to HMRC is 9.5% of £1600 (the 20% VAT on £8000) which is £152 which is ridiculous.

 

QuickBooks Team

Re: Flat Rate VAT Scheme

Hi Sandra,

 

The VAT should still be calculating correctly when using the FRS in QuickBooks Online I think it might be best to give our team a call so that we can take a look at the figures which are being calculated on the QuickBooks account. Our contact number for support can be found on this link here. Alternatively you can also include some screenshots and we can see if we can advise from here.

Not applicable

Re: Flat Rate VAT Scheme

I'll call tomorrow.