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FormerMember

Flat Rate VAT Scheme Return

SUGGESTED
Posted By FormerMember

HI, 

Has anyone experience of creating a VAT return in Start under the flat rate scheme?  I have created a return but the calculations are made on the net invoice amount and not the gross amount (net +VAT).

If I was using the standard rate it would be correct to view the invoices as "net" but under the flat rate scheme my understanding is, the flat rate is charged against the gross invoice amount, I'm ignoring any other income such as interest for the moment...

Any ideas as to why Start is not calculating this correctly?  My suspicion is, operator error!

Thanks

Chris

  • FormerMember
    0 FormerMember

    Hi, did you get to the bottom of this as I’m having the same issue?

  • 0
    SUGGESTED

    Hi Chris, 

    Thanks for using Sage City.

    You are correct that the VAT return should be calculating based on the total turnover of sales including VAT. Your box 1 should then this value multiplied by your flat rate percentage. If you have changed VAT scheme the most common reason for this was that the invoices have been entered on a Standard VAT scheme but weren't included on a return until after you have changed to flat rate.

    There are a few ways to fix this, if you are happy you know the values that should be showing in your VAT return you can adjust the boxes manually. It should be fine going forward as any new invoices will have been created on the flat rate scheme. Alternatively you can try to change the scheme back to Standard and delete the invoices, swap back to flat rate and enter the invoices now you have the flat rate scheme selected.

    If you need to change VAT schemes in future I recommend to check out our help article here. Since the steps above can be a bit tricky it may be worth speaking to your accountant if you are unsure of the adjustments you should make to the VAT return. If you are having trouble changing the scheme I would recommend to give us a call on 01919174311.

    Hope this helps. If this has answered your question please click More > Verify Answer.

    Kind Regards,

    Jack Middleton
    Sage Business Cloud Customer Services
    Sage UKI

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