Hello there, @smallgreenpealtd.
I'd like to share some information about how the Flat Rate Scheme works in QuickBooks Online.
When you use the Flat Rate Scheme (FRS), you pay the VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you're going to use depends on your type of business. This is the reason why the value of sales is different from your the amount on Profit and Loss.
I've got here some resources that provides in-depth details about dealing with the Flat Rate Scheme:
If you have further questions about the flat rate scheme, you may reach out to HMRC. They'll be able to advise you of what flat percentage rate you should be using as an alternative to the standard rate.
Please don't hesitate to reach back out to me if you have any other concerns about this. I want to ensure you're all set. Take care!
Thanks for the response. I am on 7.5% flat rate.
When I go to the taxes section and prepare my return my sales are showing as £1528.04 with VAT due of £114.60
This is incorrect.
I need to pay 7.5% of my turnover which is showing as £8794.79 on the profit of loss therefore VAT due should be £659.60
How do I get my sales to show as £8794.79 on my VAT return?
Last qtr sales show as £8794.79 on P & L. However when I go to file my flat rate VAT return the value of sales is only showing as £1528.04. Why is this? Much appreciated
Let me provide some insights about the Flat Rate Scheme (FRS) rate calculation in QuickBooks Online (QBO).
The financial reports will always show the 20% calculation which is the standard rate. Once you submit the actual return, QBO will automatically use the flat rate.
When you run reports you will see that the VAT is calculated as 20% since in the VAT FRS, you have to take 20% of the VAT on your transactions. While preparing a VAT return, you will see the actual rate is being taken and the Savings for FRS will be taken.
For additional reference, you can check this article on how the Flat Rate Scheme is calculated: UK Flat Rate Scheme.
To verify the calculation of your taxes, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing.
Here's how you can contact our customer support:
Please know that you're always welcome to post if you have any other concerns about taxes calculation in QBO. Have a good one.