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Paula Jane
July 8, 2021
Solved

Flat rate scheme incorrect

  • July 8, 2021
  • 1 reply
  • 1 view

I am on the flat rate scheme and having continual issues with Quickbooks calculating my VAT due on the net amount whereas it should be the gross amount. I have had emails saying that this has been fixed but it has not. I spent a frustrating session of over an hour on the chat with an agent who rather rudely insisted that I did not understand the flat rate scheme. Any ideas?

Best answer by MadelynC

I want to ensure this VAT calculation will get resolved, Paula Jane.


I hear your sentiments, and I know how important to get these figures to be correct. QuickBooks Online (QBO) calculates VAT based on the tax rate associated with a transaction.


You can review your transactions to ensure all information are correct. If your records are set up appropriately, you may consider contacting our Technical Support once more. They can investigate the issue further. And if need be, they can escalate it for you.


Here’s a reference that gives you insights about Flat Rate Scheme (FRS) in QBO: FRS explained.


Don't hold back to drop a comment if you have other questions or concerns besides VAT calculation. The Community is always here to help. Take care!

1 reply

MJoy_D
MJoy_DQuickBooks Team
QuickBooks Team
July 8, 2021

I can share some information with the VAT Flat Rate Scheme, @Paula Jane.

 

I suggest reaching out to an accountant or tax adviser in verifying if your VAT is due on the net amount or the gross amount. After that, I suggest reaching back to our Customer Support to get into details and explain it further to you.

 

You can reach our Customer Support for QuickBooks Online (QBO) by going to the Help icon at the top right of the account. Follow the steps below: 

 

  1. Sign in to your QuickBooks account.
  2. Select the Help (?) icon.
  3. Scroll down to select the Contact Us button and follow the prompts.
  4. You will be able to request a callback or start a live chat with an expert.

 

Check the following article to know about the different types of support we offer and their availability: QuickBooks Online Support.

 

Here's an article that tells you more about submitting VAT returns using the Flat Rate Scheme (FRS) method: Flat Rate Scheme (FRS) in QuickBooks Online. 

 

If you have other questions about your transactions, I'm happy to answer them for you. Just post it here as a reply and I'll take a look at it. Have a good one!

P
Paula JaneAuthor
July 8, 2021

I have already spoke to a live support agent. They were of no help.

 

I do not need help with using the flat rate scheme. The flat rate scheme calculates VAT on the gross figure not the net. I already have an accountant and we have used the scheme for 15 years.

 

This is taken from the HMRC website:

 

'Example You bill a customer for £1,000, adding VAT at 20% to make £1,200 in total.

The VAT flat rate for your business is 11%.

Your flat rate payment will be 11% of £1,200, or £132.'

 

The fault is with Quickbooks which is calculating the VAT on the net figure not the gross figure. As you can see from the above, this is incorrect.

 

Please advise as to what you will do to address this.

 

 

L
LollyNino_CQuickBooks Team
QuickBooks Team
August 31, 2023

I am really not sure how many more times i can keep asking the same question without getting an answer to the question.

 

PLEASE Do not give me an answer to a question i have not asked.

 

I have run the P/L account and it shows the wrong amount for the sales.

it shows sales as £100, but should show £111. please see figures from previous post

 

WHY IS THE P/L SHOWING THE WRONG AMOUNT FOR SALES


Thank you for getting back to us, @mark344. I'm here to help ensure your Profit and loss (P&L) report will show the correct income tax in QuickBooks Online (QBO).

 

When you use the FRS, you'll have to pay a fixed percentage of your VAT to HM Revenue and Customs (HMRC), depending on the type of business. In other words, if a business uses the Standard plan to issue a sales invoice for £100 plus VAT, it will owe HMRC £20. QuickBooks will do the calculation for you on the VAT return for the FRS.

 

For example, If you have sales or expenses, you should include the 20% standard rate VAT. QuickBooks will work it out according to your FRS %.

 

The reports will always show as a net figure. The VAT return itself will show the amount in a gross figure unless you select the amount, and it will be displayed in a net figure associated with $111. From there, you can identify the transactions that are the source of the discrepancy.

 

Here's an article that tells you more about submitting VAT returns using the Flat Rate Scheme (FRS) method: Flat Rate Scheme (FRS) in QuickBooks Online.

 

I'm always around here in the Community if you have any other concerns about sales taxes in QBO. Feel free to post again here. Have a good one, and keep safe.

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