I am trying to submit my VAT return digitally for the first time. We are a small and simple business that does not require most of the functionality of QuickBooks but have shoehorned us into the product because of MTD. We are on the Flat Rate scheme and pay 7.5% of revenue. The amount that QuickBooks suggest I need to pay is significantly higher that I think it should be! It seems that 20% has been added to my turnover figure before calculating the 7.5% payable which has put my VAT bill up by about a third. What have I done wrong in recording my sales to cause this to happen?
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Can I first confirm you have FRS turned on within your VAT settings (Taxes > Edit VAT > VAT settings), and the correct percentage is showing?
Thanks for your response, Linda_B.
Allow me to chime in and clarify why the tax return amount is higher than the actual amount.
In the Vat Detail Report, the balance amount will show the 20% calculation which is the standard rate. Meanwhile, the balance figure shown on the VAT Return page is not similar to the latter because this amount is calculated based on the FRS rate.
In the chart of accounts, the Savings by FRS amount will only show after the VAT return is marked as filed. However, if the balances show a similar amount, we’ll have to trace what’s causing this to happen.
The process requires accessing one’s company which we’re unable to perform here in the Community. Since the safety of your account is our top priority, I suggest you get in touch with our QBO Care Team.
You can either speak with someone over the phone or chat with an agent. Here's how:
They can look into this further and help ensure the submitted VAT return will show the correct amount.
This should help you move forward.
Keep me posted on how this goes after contacting support. I want to make sure everything is taken care of and you're all set with this concern.
Thanks for this information. I used the online chat this morning (for about 4 hours!) and am still waiting for an answer which is rather worrying. I was happy that there was someone there to take on my problem and I wish that it was a week ago rather than the final day for VAT submission, but hopefully I will get an email resolving it soon?
If you are still yet to receive a response on the chat, we would advise to contact our phone support team. You can reach them via 0808 234 5337.
The email support team will have opened a case which the phone support agent can access to look at the progress. Otherwise, please contact us via Facebook or Twitter (QuickBooksUK) sending your email address.
So I had a 4 hour chat with one rep, an hour conversation with another and thought I would check this morning. My VAT amount owing has reduced but I still don't know where the figure is coming from. I have an email from the repo I was online chatting to asking for more downloads. Where do I turn next? There is also an issue with the Purchases figure today!
To confirm, did you contact our support line via phone? This would be your best route, as they can set up a screenshare to look into this further for you.