When processing expenses on flat rate Vat scheme do you show the Vat on the accounts? I know it doesn't appear on the return but unsure whether to show it on the expenses side as it will impact the overall profit & loss
I think I recall you saying you're a Sage user and if that is the case then you show the VAT on the expenses side exactly as you would for a client on any other VAT scheme. Sage will calculate the benefit or cost of being on the scheme and will transfer it to the appropriate nominal code when you have submitted the return and run the VAT transfer journal.
