Flat rate VAT scheme and the sale of capital goods

DeanBulmer · ‎July 10, 2019

Can QuickBooks deal with the sale of capital goods when operating the flat rate scheme? For purchases there is a check box to reclaim the VAT on capital purchases but I can not find anything similar for capital sales. I did think of using the adjust option within the VAT section but I am only able to adjust box 1 so the figure in box 6 would be incorrect. Does anyone have a solution?

EmmaM · ‎February 16, 2021

Hello MarcinMa

Welcome to the Community page, We do not support FRS and the sale of capital goods. We reached out to our senior technicians to see if there were any updates we could provide for you and have been advised there has been no change. We see that is not ideal, we do take on board that you would seek other software because of this which we do not want, of course, we can not offer any change to what the product can offer in terms of FRS filings and MTD.

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John C · ‎July 10, 2019

Hi DeanBulmer

We do not support capital sales if you are using FRS. If you are not using Making Tax Digital you could do the submission through the HMRC website which will allow you to make the relevant adjustments.

DeanBulmer · ‎July 10, 2019

As this is the first return we are due to submit under MTD how would you advise we process this(especially given our client is using QB solely due to MTD and expected it to be able to deal with fairly common transactions??

GeorgiaC · ‎July 10, 2019

Hi DeanBulmer,

As above unfortunately we do not support capital sales on FRS in QuickBooks and do not have a work-around way to post this against the VAT return.

MarcinMa · ‎February 16, 2021

Do you have any plans of fixing this issue?

With the response like this given 2 years ago you are NOT being very helpful.

It seams that what you are suggesting here is that Quickbooks is not really compliment with MTD if you are on FRS and want to sell capital assets.

So is this your opinion that customers should seek different accountancy software?

EmmaM · ‎February 16, 2021

Hello MarcinMa

Welcome to the Community page, We do not support FRS and the sale of capital goods. We reached out to our senior technicians to see if there were any updates we could provide for you and have been advised there has been no change. We see that is not ideal, we do take on board that you would seek other software because of this which we do not want, of course, we can not offer any change to what the product can offer in terms of FRS filings and MTD.

Chris Cole · ‎March 04, 2021

This is completely crazy!

A standard run of the mill transaction that could occur for any business using the FRS and Quickbooks can't handle it?

There has to be a solution.

I have always thought the VAT adjustment method of Quickbooks is stupidly prohibitive. Why can't the user just post an amount to adjust each figure as required. (Like in other softwares)

There are numerous reasons why adjustments could be required, is it that Quickbooks don't trust their users to produce accurate VAT returns?

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Flat rate VAT scheme and the sale of capital goods