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Post Info TOPIC: Flat rate cash based VAT
Samilou67


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Flat rate cash based VAT
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If a company has a flat rate vat % of 7.5 % do I enter all receipts as gross and to T1 and still use t9 for non vatable things? This is really confusing me, thanks

Sam



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Sam
lindab


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That sounds reasonable to me. 

You still need to show the statistics of the business through the vat return, so T1, gross would be acceptable. 

You could always use T0, as ths would still put it in the return. 

LI suppose consistency is the key here, decide how to treat it, and stick with it. 

T9 for items outside the scope of VAT is fine too, such as wages. 



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Sheelagh


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It sounds as if you are using Sage.
The latest versions (2011 upwards I think) can handle flat rate VAT returns. You record all inputs and outputs in the same way you would if you were not on a flat rate scheme. ie T1 for vatable purchases. There is a separate code T25 for capital assets over £2000.
The VAT return calc will include a comparison so you can see if you are benefitting from the flat rate scheme.

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The answers I provide are meant as a general guide only and do not constitute advice. 
lindab


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Good point re the comparison.



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Samilou67


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Thanks both for the reply, really appreciate it.

Sam

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Sam
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