I think I am having a brain freeze and cant think! One of those days!
One of my client has just registered for flat rate VAT in April (was not VAT reg before). We need to account for gross receipts/payments and then tax the flat rate amount from the turnover in the income tax calculation? Is this right?
So when recording (in Quickbooks if that makes any difference), do I record gross or net invoices?
I set up the VAT at a flat rate in Quickbooks starting 01/04, but if you look at the VAT bit it is picking up income from before registration date and calculating on that. Do I need to set up a new company file and transfer in opening balances?
Also, how should I account for the expenses which were prior to registration but can VAT can be claimed back on? ie setting up the computer systems, telephones and printers within the 6 months of reg. They will be included in 2015-16 income tax return gross or net?
Hi Lyndsey
Too many Qs in one go for me at this time of the evening and Ive already not read a question properly on here, so just a partial response at the mo.
Im not a quick books user, but have this, which just seems to indicate that you can only change the scheme from the beginning of a VAT period and it will pick up from then. Do you have to enter VAT periods in QB and the period ends 30 June?
OK firstly I was having a bad day! I've just looked at it again and the VAT due is not VAT due at all in the report but the figures I worked out can be claimed off from preregistration capital equipment VAT etc... The figure is a negative!
I still have the previous figures into box 6 of the report, I am just running through Google as I can see I am not the only one with this problem! Also looking for some sort of reference manual for this system!
They are set up as turnover flat rate.
I cant see anywhere to enter return period in Quickbooks, just a start date.
If I am claiming back VAT on prereg expenses, for this tax year I should enter as gross and then the VAT claimed back is included in the flat rate VAT figure, or should I separate them?
