Heres the VT bit about flat rate. As Jules suggests, its not direct support but as Matt suggests its not rocket science to get the software to do what you want it to.

Hope this helps,

Shaun.

Introduction

Under the flat rate scheme, the VAT due to HMRC is based on a percentage of your turnover and you do not have to keep records of the VAT on each individual sale and purchase. However, if you use a proper bookkeeping package such as VT Transaction+, the flat rate scheme probably makes things more difficult rather than easier.

Depending on your business, you may pay less (or more) VAT under the flat rate scheme than you would under the normal accounting rules.

VT Transaction+ has no special support for the flat rate scheme and does not produce the return automatically. However, you can use VT Transaction+ to determine your VAT inclusive turnover for the VAT period. You can then manually apply your flat rate percentage to that turnover to determine the amount of VAT due.



Accounting methods

There are three ways of doing your accounting when you operate the flat rate scheme:

· Enter all your sales and purchases gross of VAT (ie do not enter any VAT amounts). This is the simplest and the quickest method; or

· Enter all your transactions as if you are accounting for VAT normally. You can then compare the liability under the flat rate scheme with normal VAT accounting to check that the flat rate scheme is advantageous to you; or

· Enter just your sales as if you were accounting for VAT normally

You must account for the VAT on your sales normally if:

· You use VT Transaction+ to issue sales invoices; or

· You use the cash based turnover method under the flat rate scheme and you enter invoices into VT Transaction+ before you receive the money (ie you maintain a customers ledger showing the amounts that your customers owe you); or

· You make sales of goods to the EC (the VT Transaction+ VAT return can then be used to complete box 9 of the flat rate return). Alternatively, you could keep a manual record of these items

Entering sales gross of VAT

It is normally best when using this method to untick the VAT registered box in the VAT dialog (Set Up menu). It is then not possible to enter VAT on transactions inadvertently.

When entering sales, simply enter the gross amount receivable in the Total box in the transaction entry dialogs. Any sales that do not form the basis of turnover for the flat rate scheme should be analysed to different analysis accounts.

To determine your VAT inclusive turnover for a period:

· Choose the Set Up>Current Period command and enter the dates of your VAT return

· Choose the Display>Profit And Loss Account command. You should add up the amounts in the Period column for any accounts to which sales within the scope of the flat rate scheme have been analysed

· If your VAT period straddles your year-end, you will need to carry out the above procedure both for the part of the VAT period that falls into the old year and the part that falls into the new year

· When you have finished, change the current accounting period back to whatever it was set to before you started

When you pay your VAT, it is normal to set up an account in the Income ledger to analyse your payment to. In your business accounts, therefore, turnover is shown net of your flat rate VAT cost.

Accounting for VAT normally on sales

In the VAT dialog (Set Up menu), ensure that the VAT registered box is ticked. If you are using the cash based turnover method, ensure that the VAT cash accounting box it ticked.

If you are using VT Transaction+ to issue sales invoices (using the SIN button), the VAT will automatically be normally accounted for. If you enter sales using the REC or SIN buttons, enter the gross amount receivable in the Total box and enter a * into the Output VAT box to calculate VAT at the standard rate.

To determine your VAT inclusive turnover for a period:

· If you are using the cash based turnover method, ensure that all receipts of invoices previously entered have been matched off against the invoices. For more details, see the VAT cash accounting topic

· Click on the VAT button on the main toolbar to display the VAT returns window

· Click on the New VAT Return caption in the VAT returns window and enter the dates of your VAT return

· The VAT inclusive turnover is the sum of boxes 1 and 6 of the VT Transaction+ return (please note that the VT Transaction+ return should not otherwise be used for the actual flat rate return)

· Click on the Save button in the VT Transaction+ VAT return

When you pay your VAT, analyse your payment to the Creditors: Net VAT due account. You should also set up an account in your Income ledger for flat rate VAT. Any difference on the Net VAT due account between the VT Transaction+ return and the amount actually paid should be transferred by journal to the Flat rate VAT account. The easiest way to enter this journal is to choose the Transaction>Journal>Trial Balance Style command. In this journal dialog, you can enter a zero in the After column for the Net VAT due account, and then hold down the Shift key and click on the Flat rate VAT account in the Income ledger.

Capital expenditure goods

Under the flat rate scheme, the VAT on items of capital expenditure over a certain size can be directly recovered. If you enter the VAT on these purchases into VT Transaction+ (and no others), box 4 of the VT Transaction+ VAT return can then be used to directly complete the same box in the flat rate VAT return. Alternatively, you can keep a manual record of these items.

Purchase of goods from the EC

If you purchase goods from the EC, you must account for the VAT due on EC acquisitions at the standard rate in your flat rate VAT return. When entering the transaction into VT Transaction+ (using the PAY, CHQ or PIN buttons) you should:

· Select the Purchase of goods from the EC option

· Complete the Input VAT box in a consistent manner to your other purchases

· Enter VAT at the standard rate into the EC VAT payable box (this box only appears if you have selected the EC VAT option)

Boxes 2 and 9 of the VT Transaction+ VAT return can then be used to directly complete the same boxes in the flat rate VAT return.