Welcome to the Community. I'm here to lend a hand with your concern about the Flat Rate Scheme in QuickBooks Online.
You can review the setup through the VAT Centre to ensure you 'll have accurate information when you need to file them.
Here are the steps:
See this screenshot for your visual reference:
I'm linking an article with additional information on this, such as editing the VAT settings:
Please be sure to let me know if there's anything else I can do to help you with the FRS calculation in QuickBooks. The Community will keep an eye on your response.
Thanks very much for the quick reply. I have checked and all looks correct FRS 8%. QB should be calculating 8% of sales but it isn't. Sales £7557.07 VAT should be £604.56, but QB has calculated 8% of £6997.29 which is £559.78, added together is £7557.07, do you know why it has done this rather than 8% of £7557.07?
Sorry Emma, how do I private message?
One other thought, when I set myself up on QB a couple of weeks ago I seem to remember when setting up VAT that there was a question asking about net or gross, I think I may have selected net. Thinking about it on my manual returns I always took 8% of gross sales, that would make box 6 correct. There is not an option to change this in EDIT VAT, it was right at the beginning when I set up QB, Is there a way of changing this?
There should be a envelope icon in your Community in the top right.If that is not there you can also message us via a private message on Twitter or Facebook.If you could include a screen shot of the vat liability report as well that would be great.
When you set up VAT it just asks for the same information in the edit settings there is not a net or gross box. We have recreated the transaction Are you using a custom code or one of the standard ones?
You seem really clued up on this topic, we're in a similar situation to you, ours is 7.5% and we've been happily filling ours with HMRC before MTD decided to ruin everything.
Anyway. You mentioned that you had to file in May, did you manage to resolve this, and if so how?
I am in the process of adding all our cash register takings. I'm now on the third alteration of this process after following different aids from Quickbooks help videos, and I've decided to wait to see if FRS even works properly first.
Hi there, after getting very frustrated with theQuickBooks team giving different answers and not knowing if they would be ready for the Flat Rate Scheme users, all went very well and was very easy to complete.
The only thing that is still frustrating me is that in QuickBooks the figures given for Profit and Loss can not be used for income tax as they take off 20% Vat then added a figure that is of no help, which I think they call Flat Rate Scheme Saving, to give a gross profit.
But the figure you need for income tax is the gross figure (including VAT) less the Flat Rate % of Vat, then less your expenses (including VAT), as per HMRC documentation.
I have discussed this with them but got nowhere, if or when we have to submit income tax digitally it might change.
It's good to see you here, quirkygirlworkshop.
Allow me to chime into this conversation and help locate the report, so you can submit your income tax in QuickBooks Online (QBO).
The Profit and Loss report will not show you the gross amount less the Flat Rate percentage of Vat. You can pull up the VAT 100 report as this will give you the summary information for each box of your return.
The example screenshot below has the Flat rate value of 10%. Multiply the gross amount £26,512.77 with 10% Flat rate and the report results in £2651.28 amount.
I'm also linking an article that will help: VAT 100 Report.
That should do it. Tag me if you have further questions about the report. I'll get them answered for you.
Hi there, I have not got a problem with the VAT reports.
It is the profit figure that is showing as incorrect, as this figure should be the gross figure (including VAT) minus the Flat Rate %.
Not the Gross minus 20% Vat plus Flat Rate Savings.
It's best if we can have visuals on your reports and your data, so we can see how the calculations goes. Please reach our to our Chat or Phone support to check this further. They have the tools to see your setup.
If you have other questions, you can always go back to this thread.
Thanks for contacting us on Community nehachopra.
you could record this transaction using the 'Inclusive of VAT' option on the transaction this way you can enter the amount as £120 and select the VAT code and QuickBooks will work out the VAT portion of your transaction.
Please let us know if you have any further questions.
Hi there, I am on the Flat Rate Scheme and use the no VAT option, as you do not claim the VAT back on purchases. ( except for large items over £2000).
Doing it this way I find easier when it comes to doing my income tax as you claim the expenses back including the VAT.
It doesn`t effect the amount of VAT you pay HMRC via Quickbooks.
We do not recommend to use the No VAT option - QuickBooks will only include purchases with VAT against them on your return if you tick the 'VAT reclaimable' box when creating the transaction. As long as you have your rate entered in your VAT settings, you do not need to change how you enter transactions - continue to use the 20% S code.
Thanks for reaching back, FVA.
The option to show the gross income and expense on the Profit and Loss report, with a line for FRP surplus while having the VAT correctly calculated is currently unavailable in QuickBooks Online (QBO). Please know that we are taking note of your report preference for our product developers to consider this for future product enhancements.
For now, you can visit our QuickBooks Blog to be updated of the latest feature available in QBO: QuickBooks Blog.
If I can be of help with something else, please don't hesitate to get back to me. I'm always happy to assist.
For me, on the Flat Rate Scheme, it needs to show P&L gross figures (ie including VAT) and not Gross Profit less the 20% VAT plus Flat Rate Scheme savings.
As the FLS savings is a figure that is meaningless (as far as I can see) in calculating my income tax. It gives a figure that is incorrect.
What the tax man wants is my gross profit, minus my flat rate scheme VAT amount, then minus my expenses including VAT.
Or am I missing something
We would advise that the best way to resolve this would be to call our support line - they have access to tools like screen share that we don't, and so can look through your reports (rather than relying on screenshots) and determine how this is being calculated. You can reach them via 0808 234 5337. Make sure to select the VAT option before coming through.
I have recently started using QB having only needed it initially to submit my VAT returns. I am on the FRS. I've read loads of articles but cant find the answer I need. Am I supposed to be recording expenses with 20% Vat or 0%
Welcome to the Community page,
If you have set your flat right to the percentage you need in the taxes section then when you go and create an expense you would select the 20% vat and once you have saved the expense the system will automatically change it to the flat right amount you have saved in the system so it will show the right amount of vat in the taxes section.
If you have any other Qs please reach back out to us.