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Post Info TOPIC: VAT flat rate scheme
pmcclure


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VAT flat rate scheme
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A customer is on the vat rate scheme @ 11.5%
For some reason when I do a vat return for the quarter the sales figure don't match up with the correct figures so I end up reconciling the vat and submitting the return via the HRMC website

The net sales I have for the quarter are £39562.70. 
Vat on the sales £7912.34.
Gross £47475.04
Flat rate vat @ 11.5% 5459.63

Journal
2200 Dr £7912.34
2201 Jc £1174.21
2202 Jc 5459.63
4099 Jc 1278.50

However they've bought an asset (£2199 plus vat) so can claim the full vat back on this, but I'm not to sure how to journal this in, plus what figures to put in what box on the HRMC web site vat return.

Would appreciate some help.

Thanks Peter



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gbm


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I'm not sure where you get the figures from for your journal. I would post the total figure (£47,475.04) to sales, then deduct the payment from sales (dr sales, cr bank account).

In relation to your asset, this should follow the normal way of dealing with input VAT. Box 4 on the VAT return.

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Nick

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ADAS


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Hi Peter,

Just a guess but is Sage set up as Flat Rate based on Invoicing and you want it to be Income based?

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Tony

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pmcclure


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It was set up as invoice based yes

An accountant I spoke to said that Sage have always had problems with the flat rate scheme, and with the problems I'm having looks as if they still are.

Regards

Peter


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ClareB4


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Peter, which version of Sage are you running? The new versions handle flat rate VAT very well indeed in my experience - it made it worth upgrading for me

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pmcclure


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Version No is
17.01.15.208

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ADAS


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As Clare said, I'm not aware of any real problems with Flat Rate, do you cross check the Customer Receipt report? I'd change the flag, if you're at the end of the Vat quarter to run on a cash received basis.



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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
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ClareB4


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I'm on the same version as you Peter and haven't had any problems at all with the flat rate setup. I'd review your company preferences and settings to see if anything looks askew there as a next step...

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fin6y


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Dr £2199.00 to Asset Nominal Code (eg 0020, 0030 etc) *when entering journal, use the tax code for the current rate of VAT eg T1 (this means it will appear on the VAT return)
Dr £439.80 to Purchase Tax Nominal Code 2201 *when entering journal, use the tax code for the current rate of VAT eg T1 (this means it will appear on the VAT return)
Cr £2638.80 to Bank/Cash Ac Nominal Code (eg 1200, 1230 etc) * (use T9)

Then it will show on the VAT return in Box 4 as £439.80 and Box 7 as 2199.00

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