UK Self Assessment - Flat Rate Scheme Adjustments
Hi,
I've read a number of posts on the community relating to the VAT Flat Rate Scheme accounting in Quickbooks and have been working on the following basis:
- Record Sales as if they are not on the flat rate scheme with the correct VAT Rate applied (i.e. Standard Rate etc.)
- Record Purchases as if they are not on the flat rate scheme with the correct VAT Rate applied (i.e. Standard Rate etc.)
- Ensure the Flat Rate scheme setup is correctly defined in the settings
- Let QuickBooks do the rest
My question is in relation to the "Income Tax" checker option that has been added to the system.
Bearing in mind the business is under Flat rate VAT, it shows the Income and Expenses Net of VAT and excludes the Gain/Loss derived from FRS Savings from the calculation.
My understanding is that this would be misleading, because the gain on FRS would be a genuine gain based on the above, and therefore should be disclosed on the Self Assessment.
Could I be missing something? Absolutely! But interested to get the thoughts of others on this topic.