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danielh-brandacc
August 23, 2024
Question

Client is on the Flat Rate Scheme at 11%. This quarter they are subject to the 16.5% due to the limited cost traders rule. How is the best way to change it?

  • August 23, 2024
  • 1 reply
  • 0 views
Client is on the Flat Rate Scheme at 11%. This quarter they are subject to the 16.5% due to the limited cost traders rule. How is the best way to change it?

1 reply

G
GeorgiaC
August 23, 2024

Hi danielh-brandacc, thanks for posting

 

If your client is at the start of a new VAT period, you can easily change their FRS rate within the tax settings. Here's how:

 

1. Go to Taxes and select VAT.
2. Click Edit VAT, then Edit Settings.
3. Edit the percentage rate in the box.
4. Click Save.

 

Thanks for reaching Intuit support. We'll be here if you need any further guidance. 

D
danielh-brandaccAuthor
August 26, 2024

Thanks but they wouldn't know what percentage they would be on at the beginning of the quarter. It will be either 11% or 16.5% depending on if they reach the amount spent on relevant goods. Is the only other way to do it by doing an adjustment on the VAT return?

 

 

F
FaithA
August 26, 2024

Thanks for getting back to us, Danielh.

 

To avoid the need for VAT return adjustments, please ensure you enter the correct FRS for that quarter.

 

If you are unsure about your client's flat rate for the next quarter, you can refer to this page: https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay for details on the VAT Flat Rate Scheme. You can also contact HMRC to ensure the accuracy of the rate you should apply.

 

Additionally, if you want to learn about setting the default VAT to 'No VAT' and stopping VAT from showing in future transactions, please refer to this article for future reference: Turn off VAT in QuickBooks Online.

 

Should you need additional assistance on VAT issues, don’t hesitate to come back to this thread. I’ll continue to be available to help. Take care!

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