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IMWILMOT
July 31, 2022
Solved

Estimated Flat Rate Amount - Incorrect calculation on invoice screen

  • July 31, 2022
  • 1 reply
  • 0 views

I am noticing that the estimated FRS VAT calculation in the Invoice section is consistently out for example:

Estimated FRS Amount @ 16.5% on 18,702.90     £3,179.49 in today's calculation. This is actually 17%. It looks like a rounding of the 16.5% up to 17%. Apart from being incorrect (albeit it says estimated) I was unclear if this value is then used elsewhere and knocks out the P&L figures or anything else. Thanks
Best answer by JonpriL

Hello there, @IMWILMOT.

 

I'll share insights about the calculation of your VAT rate in QuickBooks Online (QBO).

 

The Estimated Flat Rate Scheme in QBO uses a fixed percentage to calculate the amount of VAT in every sales transaction. Yes, and in your case, the total amount of VAT is calculated using 17% of VAT, rounding off the estimated FRS rate which is 16.5%.

 

You don't have to worry, this calculation is used and will only estimate the total VAT of sales transactions created within the period of your return. When it is time to prepare and file your return, the total amount owed will be calculated using the FRS fixed rate which is 16.5% VAT.

 

Kindly read and use this article to learn more about your VAT and how it is calculated: QuickBooks Online Flat Rate Scheme Explained.

 

On that same page, I also recommend contacting the HMRC if you need further assistance on the calculation of your VAT in QuickBooks.

 

For all the features and functions of QuickBooks, it's best to log in using any of our supported browser versions and use this reference for guidance: Help Articles in QuickBooks Online. Also, you can read subtopics that will describe how a feature is used and how to accomplish tasks related to its functions.

 

Let me know how it goes in the comments below. Don't forget to include my name, @JonpriL, in your reply so that I can get back here and answer all your QuickBooks concerns. Take care always!

1 reply

J
JonpriLAnswer
July 31, 2022

Hello there, @IMWILMOT.

 

I'll share insights about the calculation of your VAT rate in QuickBooks Online (QBO).

 

The Estimated Flat Rate Scheme in QBO uses a fixed percentage to calculate the amount of VAT in every sales transaction. Yes, and in your case, the total amount of VAT is calculated using 17% of VAT, rounding off the estimated FRS rate which is 16.5%.

 

You don't have to worry, this calculation is used and will only estimate the total VAT of sales transactions created within the period of your return. When it is time to prepare and file your return, the total amount owed will be calculated using the FRS fixed rate which is 16.5% VAT.

 

Kindly read and use this article to learn more about your VAT and how it is calculated: QuickBooks Online Flat Rate Scheme Explained.

 

On that same page, I also recommend contacting the HMRC if you need further assistance on the calculation of your VAT in QuickBooks.

 

For all the features and functions of QuickBooks, it's best to log in using any of our supported browser versions and use this reference for guidance: Help Articles in QuickBooks Online. Also, you can read subtopics that will describe how a feature is used and how to accomplish tasks related to its functions.

 

Let me know how it goes in the comments below. Don't forget to include my name, @JonpriL, in your reply so that I can get back here and answer all your QuickBooks concerns. Take care always!

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